Business rates can be a significant expense for property owners, especially when a property sits empty. In the United Kingdom, businesses are required to pay business rates on empty commercial properties, which can add up to substantial costs over time. However, there are several strategies you can utilize to avoid or minimize these costs. In this article, we will discuss some of the top strategies for avoiding business rates on empty property.
One of the most effective ways to avoid business rates on empty property is by temporarily occupying the space. By using the property for a short-term pop-up shop, exhibition, or event, you can qualify for exemptions to business rates. In the UK, properties that are used for certain charitable purposes, such as hosting exhibitions for the advancement of arts or science, can be exempt from business rates for up to six months.
Another option is to lease the property to a short-term tenant. By doing so, you can transfer the responsibility of paying business rates to the tenant, as they will be occupying the property. This can be a win-win situation, as the tenant gets to use the space for their business purposes, while you avoid paying business rates on an empty property.
Utilizing the Small Business Rate Relief scheme is another effective strategy for minimizing business rates on empty property. This scheme is designed to help small businesses by providing a discount on their business rates. If you own an empty property that would qualify as a small business property if occupied, you may still be eligible for relief under this scheme. The amount of relief varies depending on the rateable value of the property, but it can provide significant savings for property owners.
In some cases, you may be able to claim an exemption or relief on business rates if the property is undergoing renovation or structural repairs. Properties that are in the process of being refurbished or are not fit for occupation due to major repairs may be eligible for exemptions from business rates. It is important to check with your local council to see if your property qualifies for this type of relief.
Utilizing the Government’s Empty Property Relief scheme is another strategy for avoiding business rates on empty property. This scheme provides relief to property owners who are actively seeking to let or sell their empty properties. If you can demonstrate that you are taking steps to market the property and find a tenant, you may qualify for this relief. The amount of relief available varies depending on the duration of the property being empty and the efforts made to market it.
Additionally, consider exploring the possibility of converting the property to a different use to qualify for a lower rate of business rates. For example, if you own a warehouse that is currently empty, consider converting it into residential units. Residential properties are subject to lower business rates than commercial properties, so by changing the use of the property, you may be able to reduce your business rates liability.
Finally, consider seeking professional advice from a chartered surveyor or business rates consultant to explore all possible avenues for reducing your business rates on empty property. These experts can help you navigate the complex rules and regulations surrounding business rates and identify the most cost-effective strategies for your specific situation.
In conclusion, business rates on empty property can be a significant burden for property owners, but there are strategies you can employ to minimize these costs. By utilizing exemptions, reliefs, and other creative solutions, you can avoid paying business rates on empty property and maximize your savings. Remember to stay informed about the various schemes and regulations in place to help property owners reduce their business rates liability. By being proactive and exploring all available options, you can effectively manage your business rates and protect your bottom line.