Business rates can be a significant financial burden for property owners, especially when their properties are sitting empty In the United Kingdom, owners of commercial properties are required to pay business rates on properties that are not being used This can add up to thousands of pounds each year, making it crucial for property owners to find ways to minimize this expense.
Fortunately, there are some strategies that property owners can use to avoid paying business rates on empty property In this article, we will discuss some of these strategies and how you can implement them to save money.
1 **Claiming Empty Property Relief**
One of the main ways to avoid paying business rates on empty property is by claiming empty property relief This relief allows property owners to receive a discount on their business rates bill if their property has been empty for a certain period of time In England, for example, empty property relief provides a 100% discount for the first three months that a property is empty, and a 50% discount for the next three months.
To claim empty property relief, property owners must notify their local council that their property is empty and provide evidence to support their claim It is important to note that each council has its own rules and criteria for empty property relief, so it is essential to check with your local council to find out what is required.
2 **Temporary Use or Occupation**
Another way to avoid paying business rates on empty property is by temporarily using or occupying the property Property owners can lease out their empty property for temporary use, such as hosting pop-up shops, events, or exhibitions By doing so, the property is considered to be in use and may be exempt from business rates for the duration of the temporary use.
Property owners can also consider occupying the property themselves for a short period of time This could involve using the property as storage space, workspace, or for any other temporary purpose avoiding business rates on empty property. By occupying the property, owners may be able to avoid paying business rates on the empty property.
3 **Developing the Property**
Developing an empty property is another effective way to avoid paying business rates By making improvements to the property or converting it into a different use, property owners can demonstrate that the property is being put to productive use and may be eligible for a business rates exemption.
Property owners can consider renovating the property, adding extensions, or changing the layout to make it more appealing to potential tenants By investing in the development of the property, owners can not only avoid paying business rates but also increase the property’s value and rental potential in the future.
4 **Applying for Exemptions**
Property owners may be eligible for exemptions from business rates on empty property if certain criteria are met For example, properties that are undergoing major repair work or structural alterations may be exempt from business rates for a period of time The property must be uninhabitable during the renovation work to qualify for this exemption.
Owners of listed buildings or properties with a rateable value below a certain threshold may also be eligible for exemptions from business rates It is essential to check with your local council to find out if your property qualifies for any exemptions and to apply for them accordingly.
In conclusion, business rates on empty property can be a significant financial burden for property owners However, by taking advantage of empty property relief, temporary use or occupation, developing the property, and applying for exemptions, owners can minimize this expense and save money in the long run It is essential to be proactive and explore all available options to avoid paying business rates on empty property By implementing these strategies, property owners can make the most out of their empty properties and turn them into profitable assets.