Business rates can be a significant expense for property owners, especially when the property is sitting empty. In the UK, empty commercial properties are still subject to business rates, which can add up quickly if the property remains unoccupied for an extended period. However, there are some strategies that property owners can use to avoid or reduce their business rates liability on empty property. In this article, we will explore some of these tips and tricks to help property owners minimize their costs and maximize their profits.
One of the most common ways to avoid paying business rates on empty property is to claim an exemption. In the UK, certain types of empty properties are eligible for exemption from business rates, such as properties that are undergoing major refurbishment or repair. Property owners can apply for an exemption from the local council, but it is essential to provide evidence to support the claim, such as construction contracts or planning permission documents.
Another option for avoiding business rates on empty property is to temporarily occupy the space with a short-term lease or license agreement. By leasing the property to a temporary tenant, even for a short period, the property owner may be able to claim a temporary rate relief, which can significantly reduce the amount of business rates payable. This strategy can be particularly useful for property owners who are struggling to find a long-term tenant and want to minimize their costs in the interim.
Property owners can also consider demolishing or redeveloping the property to avoid paying business rates on an empty building. By obtaining planning permission for a new development or submitting a demolition notice to the local council, property owners can potentially qualify for a full exemption from business rates while the redevelopment or demolition work is underway. This strategy can be costly and time-consuming, but it can ultimately save property owners money in the long run by eliminating their business rates liability on the empty property.
Another option for property owners looking to avoid business rates on empty property is to consider letting the property on a short-term basis for community or charitable use. In the UK, properties that are used for certain community or charitable purposes may qualify for a mandatory rate relief, which can reduce the amount of business rates payable. By opening up their empty property to community groups or charities, property owners can not only avoid paying business rates but also contribute to the local community and potentially generate positive publicity for their property.
It is also worth noting that property owners can apply for various other types of rate relief and discounts to help reduce their business rates liability on empty property. For example, small business rate relief is available to properties with a rateable value below a certain threshold, providing a discount on the business rates payable. Property owners can also apply for hardship relief if they are experiencing financial difficulties and struggling to pay their business rates, which can help to reduce the amount owed or put the payments on hold temporarily.
In conclusion, there are several strategies that property owners can use to avoid or reduce their business rates liability on empty property. From claiming exemptions and temporary rate relief to leasing the property for community use or considering redevelopment or demolition, there are various options available to help property owners minimize their costs and make the most of their investment. By exploring these tips and tricks and seeking advice from a professional advisor or property consultant, property owners can take proactive steps to manage their business rates effectively and protect their bottom line. By taking the time to investigate these options and implement the most suitable strategies for their circumstances, property owners can mitigate the financial burden of business rates on empty property and ensure a more profitable future for their investment.avoiding business rates on empty property