When it comes to owning commercial property, one of the biggest concerns for property owners is the cost of business rates These rates can be a significant financial burden, especially when the property is standing empty However, there are ways to avoid paying business rates on empty property, and in this article, we will explore some of the strategies that property owners can use to reduce or eliminate this expense.
One of the first things that property owners should be aware of is the Empty Property Rate Relief This relief allows for a 100% exemption from business rates for the first three months that a property is empty After the initial three months, the property owner will have to pay the full business rates unless they qualify for another form of relief.
One way to potentially avoid paying business rates on empty property is by taking advantage of the Small Business Rate Relief If the property owner is a small business with only one property and the rateable value of that property is below a certain threshold, they may be eligible for this relief, which could reduce their business rates bill significantly However, it’s important to check with the local council to see if the property qualifies for this relief.
Another option for property owners looking to avoid paying business rates on empty property is by exploring the possibility of temporary reoccupation This involves temporarily leasing the property to another party, even if it’s just for a short period of time This can help to reset the clock on the empty property rates relief, as the property will no longer be considered empty However, property owners must be careful with this strategy, as they will need to ensure that the temporary occupant is a genuine business and not just a sham to avoid paying business rates.
Property owners can also consider demolishing the property or carrying out substantial renovation works in order to qualify for a complete exemption from business rates avoiding business rates on empty property. This is known as the “material change of use” exemption, and it applies when the property is no longer capable of being used for its original purpose While this can be a costly and time-consuming process, it can ultimately save property owners a significant amount of money in business rates.
For property owners who are unable to take advantage of any of these relief options, there are still ways to reduce the amount of business rates they have to pay on empty property One strategy is to appeal the rateable value of the property If the property is overvalued, property owners can challenge the valuation and potentially reduce their business rates bill However, it’s important to seek professional advice before embarking on this process, as it can be complex and time-consuming.
Another option is to consider leasing the property on a short-term basis to a charity or community interest company These organizations are eligible for an 80% mandatory relief on business rates, which can significantly reduce the amount that property owners have to pay However, property owners should be aware that this relief only applies if the property is being used for a qualifying purpose, so it’s important to ensure that the lease agreement complies with the relevant regulations.
In conclusion, there are a variety of strategies that property owners can use to avoid paying business rates on empty property From taking advantage of relief options to temporary reoccupation and appealing the rateable value, there are ways to reduce or eliminate this expense By exploring these strategies and seeking professional advice where necessary, property owners can minimize the financial burden of business rates and make owning commercial property more financially viable.
Overall, understanding the options available and taking proactive steps to minimize business rates on empty property can help property owners save money and make their investments more profitable in the long run.