5 Ways To Avoid Business Rates On Empty Property

When it comes to owning and managing commercial property, one of the biggest expenses that can eat into your profits is business rates These rates are taxes that businesses must pay on non-domestic properties, including empty properties However, there are ways to avoid paying business rates on empty property legally In this article, we will discuss five strategies that owners can utilize to mitigate or eliminate the burden of business rates on empty property.

1 Temporary Use

One way to avoid paying business rates on empty property is to find a temporary use for the space This could include renting out the property for short-term events or exhibitions, using it as a pop-up shop, or even offering the space for community use By actively using the property, even temporarily, you may be able to qualify for exemptions or discounts on business rates Some local authorities offer relief for properties being used for charitable or community purposes, so it’s worth checking with your council to see if your temporary use could qualify for a rate reduction.

2 Demolition or Renovation

Another way to avoid business rates on empty property is to undertake demolition or renovation work on the site In some cases, properties that are undergoing significant structural changes or are in the process of being demolished may be eligible for exemptions from business rates By demonstrating to your local council that the property is no longer capable of being used in its current state, you may be able to reduce or eliminate your business rates liability However, it’s important to note that you will need to provide evidence of the work being carried out and may be subject to periodic inspections to ensure progress is being made.

3 Small Business Rate Relief

If you own multiple properties and some of them are empty, you may be able to take advantage of small business rate relief to reduce your overall business rates liability Properties with a rateable value below a certain threshold may qualify for relief, including empty properties avoiding business rates on empty property. By consolidating your properties under a single business rates account and applying for relief, you may be able to offset the costs of empty property rates with savings on your other properties It’s always worth speaking to a qualified accountant or tax adviser to explore all available relief options and ensure you are maximizing your savings.

4 Vacant Property Relief

In some cases, owners of empty properties may qualify for vacant property relief, which provides a 100% exemption from business rates for a limited period of time This relief is designed to incentivize property owners to bring empty properties back into use by providing a grace period where no rates are payable The length of the relief period varies depending on the type of property and its location, so it’s important to check with your local council for specific details Keep in mind that you will need to apply for vacant property relief and provide evidence that the property is genuinely empty and not being used for any business activities.

5 Negotiate with your Local Authority

If you are struggling to pay business rates on empty property, it’s worth reaching out to your local council to discuss your options In some cases, councils may be willing to offer payment plans or other forms of assistance to help property owners manage their rates liabilities By demonstrating that you are actively seeking ways to utilize the property or bring it back into use, you may be able to negotiate a reduced rate or extended relief period with your council Building a positive relationship with your local authority and keeping them informed of your plans for the property can go a long way in finding a mutually beneficial solution.

In conclusion, there are several legal ways to avoid paying business rates on empty property From finding temporary uses for the space to applying for relief and negotiating with your local council, property owners have options for reducing or eliminating their rates liability By exploring these strategies and seeking professional advice where necessary, you can take proactive steps to minimize the financial impact of empty property rates on your business.