Empty commercial property can be a burden for business owners, especially when they are still required to pay business rates on the vacant space However, there are ways to legally avoid paying business rates on empty property In this article, we will discuss some strategies that business owners can use to minimize or eliminate their business rates liability on empty property.
1 Apply for Small Business Rate Relief
One of the easiest ways to reduce your business rates liability on empty property is to apply for Small Business Rate Relief This relief is available for properties with a rateable value below a certain threshold, which varies depending on the location of the property In some cases, properties with a rateable value of less than £12,000 may be eligible for 100% relief, meaning that no business rates are payable on the property.
2 Utilize Exemptions and Reliefs
There are several exemptions and reliefs available that can help reduce or eliminate business rates on empty property For example, properties that are undergoing major repair works or are classified as being in a state of disrepair may be eligible for exemption from business rates Additionally, certain types of properties, such as agricultural or charity properties, may be eligible for full or partial relief from business rates.
3 Explore Temporary Uses for the Property
One way to avoid paying business rates on empty property is to explore temporary uses for the space For example, renting out the property for short-term events or pop-up shops can generate income and help offset the cost of business rates Additionally, converting the property into temporary storage space or leasing it out as a film or photography location can also provide an income while the property is empty.
4 Consider Demolition or Change of Use
In some cases, it may be more cost-effective to demolish the empty property or change its use to a different category that is exempt from business rates For example, converting a commercial property into residential units may eliminate the business rates liability on the property avoiding business rates on empty property. However, it is important to carefully consider the costs and legal requirements involved in such a process before moving forward.
5 Challenge the Rateable Value
If you believe that the rateable value of your empty property is inaccurate, you have the right to challenge it with the Valuation Office Agency By providing evidence of the property’s condition, location, or other relevant factors, you may be able to lower the rateable value and reduce your business rates liability However, it is important to seek professional advice before challenging the rateable value to ensure that you have a strong case.
6 Keep the Property Secure and Well-Maintained
In order to avoid any unnecessary costs or liability, it is important to keep your empty property secure and well-maintained Vacant properties are often targets for vandalism, theft, and squatters, which can lead to additional expenses and legal issues By actively maintaining the property and implementing security measures, you can protect your investment and minimize any potential risks associated with owning an empty property.
7 Consult with a Professional Advisor
Navigating the complexities of business rates on empty property can be challenging, especially for business owners who are unfamiliar with the process Therefore, it is advisable to consult with a professional advisor, such as a chartered surveyor or commercial property consultant, who can provide expert guidance on how to minimize your business rates liability on empty property They can help you assess your options, navigate the legal requirements, and develop a strategy that aligns with your business goals.
In conclusion, there are several strategies that business owners can use to avoid paying business rates on empty property By exploring exemptions and reliefs, utilizing temporary uses for the property, considering demolition or change of use, challenging the rateable value, maintaining the property, and seeking professional advice, business owners can effectively minimize or eliminate their business rates liability on empty property By taking proactive steps and staying informed about their options, business owners can successfully manage their empty properties and reduce their financial burden in the long run.