For property owners, one of the most frustrating expenses can be business rates on empty property Whether you own a commercial building, office space, or retail location, having to pay business rates on a property that is not generating any income can really hurt your bottom line However, there are some strategies that property owners can use to legally avoid paying business rates on empty property
One of the most common ways to avoid business rates on empty property is by applying for an exemption In the UK, properties that are unoccupied and have a rateable value of less than £2,900 are exempt from business rates This exemption lasts for three months, after which you will need to reapply if the property is still empty If your property falls within this rateable value threshold, it is definitely worth taking advantage of this exemption to save some money.
Another way to avoid business rates on empty property is by applying for a temporary exemption In some cases, property owners may be able to claim a temporary exemption if the property is undergoing major renovations or repairs This exemption can last for a period of up to three months, with the possibility of an extension if the renovations are not completed within that timeframe However, it is important to note that the property must genuinely be undergoing renovations in order to qualify for this exemption.
Property owners can also consider converting their empty property into a community asset in order to avoid paying business rates Under the Community Empowerment Act 2015 in Scotland, community groups can apply for the right to buy and take over unused or underused land and buildings avoiding business rates on empty property. This can be a win-win situation for both the community and the property owner, as the property can be put to good use while the owner avoids paying business rates on an empty property.
Renting out the property on a short-term basis can also help property owners avoid business rates on empty property By finding temporary tenants or using the property for events such as pop-up shops, art exhibitions, or workshops, property owners can generate some income while the property is vacant This not only helps offset the cost of business rates but also ensures that the property remains in use and well-maintained.
Property owners can also consider applying for small business rate relief in order to reduce their business rates on empty property In the UK, small businesses with a rateable value of less than £15,000 may qualify for a discount on their business rates By applying for this relief, property owners can save a significant amount of money on their rates, even if the property is currently empty.
For property owners who are unable to avoid paying business rates on empty property, there are still some steps they can take to minimize the impact on their finances One option is to negotiate with the local council for a reduced payment plan or a deferment of the rates until the property is occupied Councils are often willing to work with property owners to find a solution that works for both parties, so it is worth reaching out to discuss possible options.
In conclusion, there are several strategies that property owners can use to legally avoid paying business rates on empty property By taking advantage of exemptions, temporary relief, community asset transfers, short-term rentals, and small business rate relief, property owners can reduce the financial burden of having an empty property For those who are unable to avoid paying business rates, negotiating with the local council for a payment plan or deferment can help mitigate the impact on their finances With careful planning and proactive measures, property owners can minimize the cost of business rates on empty property and protect their investment for the future.