When it comes to owning commercial property, one of the biggest concerns for business owners is the hefty business rates that come along with it. This is particularly troublesome when the property sits empty, as business rates can still apply even when there is no income being generated from the property. However, there are strategies that business owners can use to avoid paying business rates on empty property.
One of the most common ways to avoid paying business rates on empty property is through occupation. By finding a short-term tenant or a business to occupy the property, even for just a few days, business owners can exempt the property from business rates. This is due to the fact that properties that are occupied for less than six weeks are not subject to business rates. Therefore, by strategically leasing the property for short-term use, business owners can save money on business rates while still maintaining occupancy.
Another effective strategy is to apply for exemptions or discounts on business rates for empty properties. In some cases, business owners may be eligible for a discount on business rates if the property has been vacant for a certain period of time. This discount can range from 10% to 100% depending on the specific circumstances of the property. Additionally, business owners may also be able to apply for exemptions if the property is undergoing renovations or repairs that render it temporarily unusable.
Business owners can also utilize the government’s Empty Property Relief scheme to avoid paying business rates on empty properties. This scheme provides relief from business rates for properties that have been empty for a certain period of time, typically three months or more. By applying for Empty Property Relief, business owners can save money on business rates while they work to find a new tenant or market the property for sale.
It is also worth considering the option of demolishing the empty property in order to avoid paying business rates. By obtaining planning permission to demolish the property, business owners can effectively remove it from the tax roll and avoid paying business rates altogether. While this may not be a feasible option for all properties, it can be a viable solution for owners of older or dilapidated buildings that are no longer suitable for occupancy.
Another option to consider is to rent out the property at a reduced rate. By offering the property at a discounted rental rate, business owners can attract tenants who may not be able to afford the full business rates. While this may result in a lower income for the business owner, it can help to offset the cost of business rates and ensure that the property remains occupied.
Finally, business owners should be aware of the various exemptions and reliefs that are available for specific types of properties. For example, properties that are used for agricultural purposes or storage may be eligible for relief from business rates. By understanding the specific criteria for each type of relief, business owners can take advantage of opportunities to reduce or eliminate their business rates obligation.
In conclusion, avoiding business rates on empty property requires strategic planning and proactive measures. By considering options such as occupation, exemptions, discounts, Empty Property Relief, demolition, reduced rental rates, and specific property exemptions, business owners can effectively minimize their business rates liability and maximize their return on investment. By staying informed and exploring all available avenues, business owners can ensure that their empty property remains a valuable asset rather than a financial burden.
Remember, a little creativity and proactive planning can go a long way in avoiding business rates on empty property. With the right approach, business owners can save money and protect their bottom line while keeping their properties in good standing.