When it comes to owning commercial property, one of the biggest financial burdens for businesses can be business rates. These rates are taxes that businesses pay on the properties they own, based on the rateable value of the property. However, if your property is empty, you may be able to avoid paying these rates altogether. In this article, we will discuss five ways you can legally avoid business rates on empty property.
1. Use the Small Business Rates Relief Scheme
One way to avoid business rates on empty property is to take advantage of the Small Business Rates Relief Scheme. This scheme is designed to help small businesses by offering a discount on their business rates if their property has a rateable value below a certain threshold. In some cases, properties with a rateable value of up to £15,000 may be entitled to a full exemption from business rates, meaning you won’t have to pay a penny on your empty property.
To qualify for this relief, your property must be unoccupied and have a rateable value of less than £15,000. It’s important to check with your local council to see if your property is eligible for this scheme and to apply for the relief if you meet the criteria.
2. Apply for Empty Property Relief
If your property has been empty for a certain period of time, you may be eligible for Empty Property Relief. This relief allows businesses to claim a discount on their business rates for properties that have been empty for a specified amount of time. The exact period of time varies depending on the local council, but it is typically around three to six months.
To apply for Empty Property Relief, you will need to show proof that your property has been empty for the required period of time. This could be in the form of utility bills, property inspections, or other documentation. Again, it’s essential to check with your local council to see if you qualify for this relief and to submit the necessary paperwork to claim it.
3. Consider Temporary Occupation
Another way to avoid business rates on empty property is to consider temporary occupation. This involves allowing another individual or business to occupy your property temporarily, even if it’s just for a short period of time. By doing so, you can benefit from exemptions and discounts on your business rates, as the property is no longer considered vacant.
There are many options for temporary occupation, such as renting out space to artists, hosting pop-up shops, or collaborating with other businesses for short-term projects. Not only can this help you save money on business rates, but it can also generate some extra income while your property is empty.
4. Apply for Charitable Relief
If your empty property is being used for charitable purposes, you may be eligible for Charitable Relief on your business rates. Charities and non-profit organizations are entitled to a 80% discount on their business rates for properties they occupy, even if they are empty. This means that you would only have to pay 20% of the usual business rates for your empty property.
To qualify for this relief, your property must be used for charitable purposes and be registered with the Charity Commission. You will need to provide proof of your organization’s charitable status to your local council to apply for this relief.
5. Appeal the Rateable Value
Finally, if you believe that the rateable value of your property is incorrect, you can appeal to have it reassessed. The rateable value is based on the rental value of the property, so if there have been changes in the local property market or in the condition of your property, you may be able to argue for a lower valuation.
To appeal the rateable value, you will need to provide evidence to your local Valuation Office Agency, such as recent rental agreements, property inspections, or any other relevant information. If successful, a lower rateable value could result in a significant reduction in your business rates, even if your property is empty.
In conclusion, there are several legal ways for businesses to avoid paying business rates on empty property. By taking advantage of relief schemes, temporary occupation, charitable status, or appealing the rateable value, you can reduce the financial burden of holding onto vacant properties. It’s essential to stay informed about the options available to you and to work closely with your local council to navigate the process of avoiding business rates on empty property.