As a property owner, dealing with business rates on empty property can be a significant financial burden. In the UK, businesses are required to pay business rates on commercial properties that are vacant. However, there are strategies that property owners can implement to minimize or avoid these costs altogether. In this article, we will explore five effective strategies for avoiding business rates on empty property.
1. Utilize the Small Business Rate Relief
One of the most effective ways to reduce or avoid business rates on empty property is to utilize the Small Business Rate Relief scheme. This scheme is designed to provide financial assistance to small businesses and property owners by reducing the amount of business rates they are required to pay. If your property is eligible for Small Business Rate Relief, you may be able to receive a significant discount on your business rates, making it more affordable to keep your property vacant.
To qualify for Small Business Rate Relief, your property must have a rateable value below a certain threshold set by the local council. If your property meets the criteria, be sure to apply for the relief as soon as possible to start saving on your business rates.
2. Explore Exemptions and Discounts
In addition to Small Business Rate Relief, there are various exemptions and discounts available that can help property owners avoid business rates on empty property. For example, properties that are undergoing major renovation or redevelopment may be eligible for a temporary exemption from business rates. Likewise, properties that are classified as agricultural or industrial may qualify for a discount on their rates.
Before assuming that you are required to pay full business rates on your empty property, be sure to thoroughly explore all available exemptions and discounts. By taking advantage of these opportunities, you can significantly reduce the financial burden of keeping your property vacant.
3. Consider Short-Term Lets or Pop-Up Shops
If you are unable to qualify for exemptions or relief on your business rates, consider renting out your empty property on a short-term basis to avoid paying full rates. Short-term lets or pop-up shops can be a great way to generate income from your property while minimizing your business rates liability.
By renting out your property for temporary use, you can take advantage of the Empty Property Rate Relief scheme, which provides a 50% discount on business rates for properties that are in use for a short period of time. This can be a cost-effective solution for property owners looking to avoid paying full rates on their vacant properties.
4. Appeal your Rateable Value
Another strategy for avoiding business rates on empty property is to appeal your property’s rateable value with the Valuation Office Agency (VOA). In some cases, property owners may be able to challenge the rateable value of their property and secure a reduction in their business rates liability.
To appeal your rateable value, you will need to provide evidence to support your claim, such as recent rental agreements, valuations, or comparisons to similar properties in the area. If successful, you could see a significant reduction in the amount of business rates you are required to pay on your empty property.
5. Utilize Vacant Property Guardians
Finally, one innovative strategy for avoiding business rates on empty property is to work with vacant property guardians. Vacant property guardians are individuals or companies that are responsible for securing and maintaining empty properties on behalf of property owners. By placing guardians in your vacant property, you can demonstrate that the property is actively being used and occupied, which may help you qualify for exemptions or discounts on your business rates.
Additionally, working with vacant property guardians can help deter criminal activity, vandalism, and squatting in your empty property. This can provide peace of mind for property owners who are concerned about the security of their vacant properties while also potentially reducing their business rates liability.
In conclusion, there are several effective strategies for avoiding business rates on empty property. By exploring options such as Small Business Rate Relief, exemptions and discounts, short-term lets, rateable value appeals, and vacant property guardians, property owners can minimize the financial impact of keeping their properties vacant. By implementing these strategies, property owners can ensure that their properties remain profitable and sustainable while also complying with business rates regulations.
By utilizing these strategies, property owners can navigate the complexities of business rates on empty property and avoid unnecessary financial burdens. With careful planning and proactive management, property owners can effectively minimize their business rates liability and maximize the potential of their vacant properties.