Business rates can be a significant cost for property owners, especially when a property sits empty Empty property rates can add up quickly and eat into profits, making it crucial for property owners to understand how to avoid or reduce these costs In this article, we will discuss some strategies to avoid business rates on empty property.
One common way to avoid business rates on empty property is to make sure the property is exempt from such rates Properties that are completely empty and have no furnishings or equipment in them may be eligible for a temporary exemption from business rates This exemption typically lasts for three months, after which the property owner will need to start paying business rates again However, it can provide some relief during the initial period of vacancy.
Another way to avoid business rates on empty property is to utilize the small business rate relief scheme This scheme allows properties with a rateable value of less than £12,000 to claim a discount on their business rates If the property is vacant and falls within this rateable value threshold, the property owner may be able to avoid paying business rates altogether It’s important to check with the local council to see if the property qualifies for this relief.
Property owners can also consider using the property for a charitable purpose to avoid paying business rates on empty property Properties that are used for charitable purposes are generally exempt from business rates This could involve renting out the property to a charity or using it for community events or activities By doing so, property owners can avoid the burden of paying business rates while also contributing to a good cause.
Alternatively, property owners can explore the option of applying for an empty property relief scheme avoiding business rates on empty property. This scheme allows property owners to claim a 50% discount on their business rates for a specified period of time, typically 12 months To qualify for this relief, the property must have been empty for a minimum of three months and not be used for any business purposes Property owners should check with the local council to see if they are eligible for this relief and what the specific requirements are.
In some cases, property owners may also consider demolishing or refurbishing the empty property to avoid paying business rates Properties that are undergoing significant redevelopment or renovation work may be eligible for a temporary exemption from business rates This can provide property owners with some breathing room while they work on improving the property and finding new tenants.
Property owners should also consider exploring the option of short-term leases or licenses to occupy the property By allowing temporary tenants to use the property for a short period of time, property owners can avoid paying business rates on empty property This can be a win-win situation for both parties, as the property owner generates some income from the temporary lease while the tenant gains access to a space for their business activities.
Lastly, property owners should be proactive in marketing and promoting the empty property to potential tenants By actively seeking new tenants and promoting the property’s features and amenities, property owners can reduce the amount of time the property sits empty This, in turn, can help to avoid paying unnecessary business rates on the property.
In conclusion, there are several strategies that property owners can implement to avoid or reduce business rates on empty property By exploring options such as temporary exemptions, small business rate relief, charitable use, empty property relief schemes, redevelopment, short-term leases, and proactive marketing, property owners can minimize the financial burden of empty property rates It’s important for property owners to research and understand the options available to them and work with their local council to find the best solution for their specific situation.