Business rates can be a significant expense for any property owner, especially when the property is empty. However, there are ways to legally avoid paying business rates on empty property. In this article, we will discuss some strategies that property owners can use to minimize or eliminate business rates on their vacant properties.
One common strategy for avoiding business rates on empty property is to temporarily occupy the property with a charity or community group. As long as the charity or community group uses the property for charitable purposes, the property will be exempt from business rates. This can be a win-win situation for both the property owner and the charity, as the property owner avoids paying business rates while the charity benefits from having a space to operate.
Another option for avoiding business rates on empty property is to convert the property into a temporary pop-up shop or gallery. By doing so, the property can be classified as a temporary retail space, which is exempt from business rates for a period of up to two years. This can be a great way to generate income from the property while also avoiding the expense of business rates.
Property owners can also apply for exemptions or discounts on business rates for empty properties. For example, properties that are undergoing major renovation or structural repairs may be eligible for a 100% discount on business rates for a period of up to 12 months. In some cases, properties that are actively marketed for rent or sale may also be eligible for a discount on business rates.
Another strategy for avoiding business rates on empty property is to consider leasing the property to a tenant on a short-term lease. By leasing the property on a short-term basis, the property can be classified as occupied, which can help to reduce or eliminate business rates. This can be a good option for property owners who are struggling to find a long-term tenant but still want to avoid paying business rates on their vacant property.
When it comes to avoiding business rates on empty property, it’s important for property owners to stay informed about changes to the law and regulations. For example, in April 2021, the government implemented a new relief scheme for properties that have been vacant for more than three months as a result of the COVID-19 pandemic. Under this scheme, eligible properties may be entitled to a 100% discount on business rates for a period of up to 12 months.
In addition to staying informed about changes to the law, property owners should also consider seeking professional advice from a chartered surveyor or property advisor. These professionals can help property owners navigate the complexities of business rates and identify strategies for minimizing or eliminating the expense of business rates on empty property.
In conclusion, avoiding business rates on empty property is possible with careful planning and strategic decision-making. By exploring options such as temporary occupation by a charity or community group, converting the property into a pop-up shop, applying for exemptions or discounts, leasing the property on a short-term basis, and staying informed about changes to the law, property owners can minimize the financial burden of business rates on their vacant properties. With the right approach, property owners can successfully navigate the challenges of empty property ownership and find ways to reduce costs while maximizing the potential of their properties.