Business rates can be a significant financial burden for property owners, especially when a property is sitting empty If you own a commercial property that is currently vacant, you may be wondering how you can avoid paying business rates while you work to attract new tenants or find another use for the space Fortunately, there are several strategies you can employ to minimize or even eliminate your business rates liability on empty property In this article, we will explore five ways you can avoid business rates on empty property.
1 Small Business Rates Relief
If your property has a rateable value of less than £12,000, you may be eligible for Small Business Rates Relief This scheme is designed to help small businesses, including those that own empty properties, by providing a discount on their business rates bill The amount of relief you receive will depend on the rateable value of your property, and in some cases, you may be eligible for 100% relief To apply for Small Business Rates Relief, you will need to contact your local council and provide them with the necessary information about your property and business.
2 Temporary Empty Property Relief
If your property is temporarily empty, you may be able to qualify for Temporary Empty Property Relief This relief scheme typically provides a 100% discount on business rates for the first three months that a property is empty, followed by a 50% discount for a further three months After the initial six-month period, you will be required to pay the full rate of business rates unless you can demonstrate that the property is still actively being marketed for rent or sale To qualify for Temporary Empty Property Relief, you will need to inform your local council of the vacancy and provide evidence of your marketing efforts.
3 Exemptions and Discretionary Relief
In some cases, you may be able to apply for exemptions or discretionary relief to avoid paying business rates on empty property avoiding business rates on empty property. Exemptions are typically granted for properties that are undergoing major structural repairs or are otherwise unfit for occupation Discretionary relief, on the other hand, may be available in cases where a property is vacant due to exceptional circumstances, such as a downturn in the local economy or a change in planning regulations To apply for exemptions or discretionary relief, you will need to make a case to your local council, providing evidence to support your claim.
4 Short-Term Lets
Another way to avoid business rates on empty property is to consider entering into a short-term let agreement with a temporary occupant By leasing the property to a short-term tenant, you may be able to qualify for Empty Property Relief, which provides a 100% discount on business rates for properties that are occupied for a short period of time This can be a particularly attractive option for property owners who are struggling to find a long-term tenant but still want to minimize their business rates liability.
5 Demolition or Repurposing
Finally, if you are unable to attract tenants or find another use for your empty property, you may want to consider demolishing the building or repurposing it for a different use In some cases, properties that are undergoing demolition or redevelopment may be eligible for exemptions from business rates Similarly, if you can demonstrate that you are actively working to repurpose the property for a new use, you may be able to qualify for relief on your business rates bill Before undertaking any major changes to your property, be sure to consult with your local council to understand the potential impact on your business rates liability.
In conclusion, there are several strategies you can employ to avoid paying business rates on empty property Whether you qualify for Small Business Rates Relief, Temporary Empty Property Relief, exemptions, or discretionary relief will depend on your specific circumstances and the efforts you are making to reoccupy or repurpose the property By exploring these options and working closely with your local council, you can minimize the financial burden of business rates on your empty property and focus on finding a sustainable solution for the space.