Empty properties can be a burden for business owners, not only due to the lack of income generated but also because of the business rates that still need to be paid on them. Fortunately, there are ways to avoid paying business rates on empty property while finding a solution for its vacancy.
Business rates are taxes that business owners have to pay on non-residential properties, including shops, offices, warehouses, and factories. When a property becomes empty, the business rates still need to be paid unless certain exemptions or discounts apply. Here are some strategies to help business owners avoid paying business rates on their empty properties:
1. Qualify for Small Business Rate Relief: If the property is classified as a small business property, you may be eligible for Small Business Rate Relief. This relief can reduce the amount of business rates you have to pay, or even exempt you from paying them altogether. Check with your local council to see if your property qualifies for this relief.
2. Use Temporary Exemptions: In some cases, empty properties are granted temporary exemptions from paying business rates. This can happen if the property is undergoing repair or structural changes, or if the owner is actively trying to rent or sell the property. Make sure to notify your local council about the reasons for the property’s vacancy to see if you qualify for a temporary exemption.
3. Apply for Empty Property Relief: Empty Property Relief is a government scheme that allows business owners to claim relief on their business rates for a set period of time if their property is empty. The length of time for the relief period varies depending on the type of property and the local council’s policies. To apply for Empty Property Relief, you will need to fill out a form with your local council and provide details about the property’s vacancy.
4. Consider Property Guardians: Property guardians are individuals or companies that live in and maintain empty properties in exchange for reduced rent. By placing property guardians in your vacant property, you can keep it occupied and potentially qualify for discounts on your business rates. This option not only helps you save money on business rates but also protects your property from vandalism or squatters.
5. Explore Temporary Uses: Instead of keeping your property completely empty, consider temporary uses that can generate income while avoiding paying full business rates. For example, you could rent out the property for events, pop-up shops, or storage purposes. By using the property temporarily, you may be able to qualify for discounts on your business rates or exemptions for certain types of usage.
6. Appeal to Your Local Council: If you believe that your property should be exempt from paying business rates due to specific circumstances, such as being in an area with high vacancy rates, you can appeal to your local council for a reassessment. Provide evidence and documentation to support your case, and discuss possible exemptions or discounts that may apply to your property.
7. Stay Informed About Changes in Legislation: Business rates and exemptions for empty properties can vary depending on changes in legislation and government policies. Stay informed about any updates or new initiatives that may affect your property’s eligibility for relief. By staying proactive and knowledgeable about the current regulations, you can take advantage of any opportunities to reduce your business rates on empty property.
avoiding business rates on empty property can help business owners save money and ease the financial burden of maintaining vacant properties. By exploring different strategies, such as qualifying for relief, using temporary exemptions, or considering alternative uses for the property, business owners can find ways to minimize the costs associated with empty properties. Remember to consult with your local council and seek professional advice to determine the best course of action for avoiding business rates on your empty property.