Business rates can be a significant expense for property owners, especially when a property is sitting empty. Fortunately, there are strategies that can be implemented to help avoid or reduce business rates on empty properties. In this article, we will explore seven effective strategies that property owners can consider.
1. Temporary Use or Occupation
One way to avoid paying business rates on an empty property is to temporarily use or occupy the space. By actively using the property, even if it is for a short period of time, the property may be exempt from business rates. This could include renting out the space for events, temporary storage, or short-term office use. It is important to check with the local authorities to ensure that the temporary use qualifies for rate relief.
2. Property Development or Renovation
Another strategy to avoid business rates on empty property is to conduct property development or renovation work. If the property is undergoing significant construction or renovation work that renders it temporarily uninhabitable, it may be exempt from business rates. By demonstrating that the property is actively being improved, property owners can reduce or eliminate the business rates during the development or renovation period.
3. Charity Relief
Property owners can also consider applying for charity relief to avoid paying business rates on empty property. If a registered charity intends to occupy the property in the future, the property may be eligible for relief from business rates. By partnering with a charity organization or allowing them to use the property rent-free, property owners can potentially avoid the burden of business rates on an empty property.
4. Vacant Property Relief
In some cases, property owners may be eligible for vacant property relief to reduce or eliminate business rates on empty properties. Vacant property relief is typically available for a limited period, ranging from three to six months, depending on the local regulations. By applying for vacant property relief, property owners can temporarily suspend the payment of business rates until the property is occupied again.
5. Reduced Empty Property Rates
Property owners may also qualify for reduced empty property rates, which offer a discount on the full business rates for empty properties. This can be a cost-effective solution for property owners who are unable to occupy or rent out the property immediately. By applying for reduced empty property rates, property owners can significantly reduce the financial burden of business rates on empty properties.
6. Small Business Rate Relief
Small business rate relief is another option for property owners to consider when trying to avoid business rates on empty property. If the property is eligible for small business rate relief, the business rates may be reduced or completely exempt for qualifying small businesses. This can be a viable solution for property owners who operate small businesses or lease out properties to small businesses.
7. Enterprise Zone Relief
Property owners located in designated enterprise zones may benefit from enterprise zone relief, which offers incentives and relief from business rates. By investing in an enterprise zone property, property owners can potentially avoid business rates on empty properties and benefit from other tax incentives provided by the government. It is important to research the specific requirements and benefits of enterprise zone relief in the respective area.
In conclusion, there are several strategies that property owners can implement to avoid or reduce business rates on empty properties. By exploring temporary use or occupation, property development, charity relief, vacant property relief, reduced empty property rates, small business rate relief, and enterprise zone relief, property owners can find relief from the financial burden of business rates on empty properties. It is advisable to consult with local authorities and tax experts to determine the most suitable strategy for avoiding business rates on empty property. By taking proactive measures and exploring available relief options, property owners can effectively manage their empty properties and minimize unnecessary expenses.