As a business owner, the last thing you want is to be burdened with additional expenses, such as business rates on empty property. These rates can quickly add up and eat into your profits, making it essential to find ways to avoid them. In this article, we will explore five strategies to help you avoid business rates on empty property.
1. Temporary occupation
One effective way to avoid business rates on empty property is by temporarily occupying the space. This could involve renting out the property to a pop-up shop, hosting events or exhibitions, or even allowing other businesses to use the space on a short-term basis. By doing so, you can demonstrate to the local council that the property is actively being used and therefore should not be subject to business rates.
Furthermore, temporary occupation can also help generate some income while you are looking for a long-term tenant for the property. This way, you can offset some of the costs associated with owning an empty property.
2. Renovation or refurbishment
Another way to avoid business rates on empty property is by carrying out renovation or refurbishment works. By making improvements to the property, you can demonstrate to the local council that you are actively working towards bringing the property back into use. This can help you secure a temporary exemption from business rates while the renovation works are ongoing.
Additionally, renovating or refurbishing the property can also increase its market value and attractiveness to potential tenants. This way, you can not only avoid business rates but also enhance the property’s rental potential in the future.
3. Charity or community use
One lesser-known way to avoid business rates on empty property is by allowing a charity or community group to use the space. Certain properties that are used for charitable or community purposes may be eligible for relief from business rates. By partnering with a charity or community organization and allowing them to use the property for their activities, you can potentially qualify for this relief.
Moreover, partnering with a charity or community group can also help you contribute to a meaningful cause and build positive relationships with the local community. This can be beneficial for your business in the long run, as it can enhance your reputation and goodwill in the area.
4. Vacant property relief
In some cases, you may be eligible for vacant property relief, which provides a temporary exemption from business rates for certain types of empty properties. This relief is typically available for a limited period, such as three or six months, after which you may need to reapply for the relief. To qualify for vacant property relief, you will need to demonstrate that the property is genuinely empty and not in use for any purpose.
By taking advantage of vacant property relief, you can reduce the financial burden of business rates on empty property and buy yourself some time to find a new tenant or use for the property.
5. Appeal or challenge the rateable value
If you believe that the rateable value of your property is incorrect, you have the right to appeal or challenge it with the local council. By providing evidence to support your claim, such as comparable rental values or property assessments, you may be able to successfully lower the rateable value of the property and reduce your business rates liability.
It is important to note that challenging the rateable value can be a complex process, so it may be beneficial to seek advice from a professional, such as a surveyor or property consultant, to help you navigate the appeals process effectively.
In conclusion, avoiding business rates on empty property is possible with careful planning and strategic decision-making. By exploring the various options available to you, such as temporary occupation, renovation, charity or community use, vacant property relief, and rateable value appeals, you can effectively manage the financial impact of owning an empty property and protect your bottom line. Remember to consult with experts or advisors to ensure that you are taking the right steps to minimize your business rates liability and make the most of your property assets.
Avoiding business rates on empty property avoiding business rates on empty property is crucial for business owners looking to maximize their profits and reduce unnecessary expenses. By implementing the strategies outlined in this article, you can proactively manage your empty property and mitigate the financial impact of business rates.