Business rates can be a costly burden for property owners, especially when a property sits empty. Empty properties are subject to business rates, which can add up to significant expenses over time. However, there are strategies that property owners can use to avoid or reduce their business rates on empty property. In this article, we will explore some of the top strategies for avoiding business rates on empty property.
1. Temporary property use
One effective strategy for avoiding business rates on empty property is to find temporary uses for the space. By temporarily renting out the property for short-term events or pop-up shops, property owners can avoid paying business rates on the property. This can not only help generate some income while the property is empty but also prevent the property from being classified as empty for business rates purposes.
2. Exemptions and reliefs
Property owners should also be aware of the various exemptions and reliefs that may be available to them when it comes to business rates on empty property. For example, certain types of property, such as agricultural land or buildings used for storage, may be exempt from business rates altogether. Additionally, there are other reliefs available, such as the empty property relief and the small business rate relief, which can help reduce the amount of business rates owed on empty property.
3. Reduce the rateable value
Another strategy for avoiding business rates on empty property is to reduce the rateable value of the property. Property owners can do this by making physical changes to the property that may impact its rateable value, such as removing fixtures and fittings or altering the layout of the space. By reducing the rateable value of the property, owners can ultimately reduce the amount of business rates that they are required to pay.
4. Let the property to a charity
Property owners may also consider letting their empty property to a charity in order to avoid paying business rates. Properties that are occupied by charities for charitable purposes are eligible for 80% mandatory relief on business rates, which can significantly reduce the amount owed. This can be a win-win situation for both the property owner and the charity, as the charity benefits from a reduced rate while the property owner avoids paying business rates on an empty property.
5. Use the property for self-storage
If finding a temporary use for the property is not feasible, property owners may consider using the empty property for self-storage purposes. Self-storage facilities are exempt from business rates, so converting an empty property into a self-storage facility can help property owners avoid paying business rates on the property altogether. This can be a viable option for property owners who are struggling to find a long-term tenant for their empty property.
6. Appeal the rateable value
Property owners who believe that the rateable value of their property is inaccurate may consider appealing the valuation with the help of a professional surveyor or valuer. By appealing the rateable value, property owners can potentially reduce the amount of business rates that they are required to pay on the property. It is important to act quickly, as there are strict deadlines for appealing rateable values, and any changes may only apply from the date of the appeal.
In conclusion, there are several strategies that property owners can use to avoid or reduce their business rates on empty property. By finding temporary uses for the property, taking advantage of exemptions and reliefs, reducing the rateable value, letting the property to a charity, using the property for self-storage, or appealing the rateable value, owners can effectively minimize the financial burden of business rates on empty property. It is important for property owners to explore these strategies and determine which options are most suitable for their specific circumstances in order to save costs and make the most of their empty property.
By implementing these strategies, property owners can successfully avoid or reduce their business rates on empty property, ultimately saving money and maximizing the potential of their properties.