When it comes to owning commercial property, one of the major concerns for business owners is the burden of paying business rates on empty properties These rates can be a significant financial drain, especially during times when the property is not generating any income However, there are ways to legally avoid paying business rates on empty properties In this article, we will discuss some effective strategies to minimize this expense and maximize your savings.
First and foremost, it’s important to understand the rules and regulations governing business rates on empty properties In the United Kingdom, for example, business rates are charged on most non-domestic properties, including offices, shops, warehouses, and factories The rateable value of a property is determined by the local authority and is used to calculate the amount of business rates that need to be paid However, there are exemptions and reliefs available for empty properties that can help reduce or eliminate this cost.
One strategy to avoid paying business rates on an empty property is to apply for a temporary exemption In the UK, properties that are empty for a certain period of time may be eligible for a 100% exemption from business rates for a specified period This exemption usually lasts for three months for industrial and warehouse properties and six months for all other types of properties By applying for this exemption, you can avoid paying business rates during the initial period of vacancy.
Another option to consider is applying for a partial exemption on your business rates This can be done by demonstrating to the local authority that the property is undergoing renovations or repairs that prevent it from being occupied If approved, you may be eligible for a reduced rate or a complete exemption from business rates for a specific period of time Keep in mind that you must provide evidence to support your claim for a partial exemption, such as invoices from contractors or building surveys.
Additionally, you can explore the option of claiming relief under the Small Business Rate Relief scheme avoiding business rates on empty property. If you own a small business with a rateable value below a certain threshold (this threshold varies depending on the location), you may be eligible for a discount or relief on your business rates This scheme is designed to support small businesses and can be a valuable resource for minimizing your expenses when your property is empty.
In some cases, it may be beneficial to consider leasing out your empty property to a charity or a community group Properties occupied by registered charities are eligible for an 80% discount on business rates, while those occupied by community Amateur Sports Clubs (CASCs) can receive a 100% discount By leasing your property to a qualifying organization, you can benefit from a significant reduction in your business rates liability and support a worthy cause at the same time.
If you are unable to find a tenant for your empty property, another option to explore is appealing your business rates assessment You have the right to challenge the rateable value assigned to your property by the local authority if you believe it is inaccurate or unfair By hiring a professional surveyor or valuer to reassess the rateable value of your property, you may be able to secure a lower valuation and a reduced business rates bill.
It’s also worth noting that there are certain circumstances where properties may be exempt from business rates altogether For example, properties that are used for storage purposes only, agricultural land and buildings, and properties with a rateable value below a certain threshold may be eligible for relief or exemption from business rates By familiarizing yourself with the regulations and exploring all available options, you can effectively minimize your business rates liability on empty properties.
In conclusion, business rates on empty properties can be a significant financial burden for commercial property owners However, by taking proactive measures and exploring the various exemptions and reliefs available, you can effectively avoid paying business rates on your empty property and maximize your savings Whether it’s applying for temporary exemptions, leasing to charitable organizations, appealing your rates assessment, or exploring other relief options, there are effective strategies to help you reduce your business rates liability and manage your property expenses more efficiently.
By being informed and proactive, you can navigate the complexities of business rates on empty properties and take advantage of the available resources to minimize your financial obligations With careful planning and strategic decision-making, you can effectively avoid paying business rates on your empty property and optimize your financial resources for the long term.