As a property owner, one of the challenges you may face is dealing with business rates on empty properties. Empty properties are subject to business rates, which can be a significant financial burden for property owners. However, there are ways to avoid paying business rates on empty property. In this article, we will discuss some strategies that property owners can use to minimize or eliminate the business rates on their empty properties.
The first step in avoiding business rates on empty property is to understand the regulations and exemptions that apply to your specific situation. In the UK, for example, certain properties may be eligible for empty property rates relief. Properties that are undergoing major renovation or repair work may qualify for a temporary exemption from business rates. Additionally, certain types of properties, such as those with a rateable value below a certain threshold, may be eligible for small business rates relief.
Another strategy for avoiding business rates on empty property is to actively market the property for rent or sale. By demonstrating that you are actively seeking a tenant or buyer for the property, you may be able to qualify for a temporary exemption from business rates. This exemption is typically available for up to three months for commercial properties and up to six months for industrial properties. Be sure to keep detailed records of your marketing efforts, as you may be required to provide evidence to the local council.
If you are unable to find a tenant or buyer for your empty property, you may still be able to avoid paying business rates by taking advantage of a formal appeal process. Property owners can appeal the rateable value of their property to the Valuation Office Agency (VOA), the government agency responsible for setting business rates. If you believe that the rateable value of your property is inaccurate or unfair, you can submit evidence to the VOA to support your case. If successful, your business rates may be reduced or eliminated altogether.
Property owners should also be aware of the implications of leaving a property empty for an extended period of time. In some cases, properties that have been empty for an extended period may be subject to additional charges, such as a 50% premium on business rates. This premium is intended to encourage property owners to bring empty properties back into use and can be a significant financial burden for owners of long-term vacant properties.
In addition to these strategies, property owners can also consider leasing their empty property to a charity or community organization. Properties that are used for charitable purposes may be eligible for 80% relief from business rates, providing a valuable opportunity for property owners to support local community organizations while also reducing their business rates liability. To qualify for this relief, the property must be occupied by a registered charity or community amateur sports club for the majority of the time.
Ultimately, avoiding business rates on empty property requires proactive planning and strategic decision-making on the part of property owners. By understanding the regulations and exemptions that apply to empty properties, actively marketing the property, appealing the rateable value, and considering alternative uses for the property, property owners can minimize or eliminate their business rates liability.
In conclusion, property owners can take several steps to avoid paying business rates on empty property. By understanding the regulations and exemptions that apply, actively marketing the property, appealing the rateable value, and considering alternative uses for the property, property owners can minimize their business rates liability and avoid unnecessary financial burdens. With careful planning and the right strategies, property owners can effectively manage their empty properties and reduce their business rates costs.