5 Ways To Avoid Business Rates On Empty Property

Empty properties can be a significant financial burden for business owners, especially when they are subject to business rates Business rates are a tax on non-residential properties, including shops, offices, warehouses, and factories These rates can add up quickly, especially for properties that remain vacant for an extended period of time However, there are ways to avoid paying business rates on empty property In this article, we will explore five strategies that can help you reduce or eliminate your business rates liability on empty property.

1 Apply for Empty Property Relief

One of the most common ways to reduce business rates on empty property is to apply for Empty Property Relief This relief allows businesses to receive a temporary exemption from paying business rates on empty properties Most businesses are eligible for a 100% exemption for the first three months the property is empty, after which the exemption may be reduced to 50% It is important to check with your local council to see if you qualify for Empty Property Relief and to apply for it as soon as possible to avoid any unnecessary costs.

2 Lease the Property Out

Another strategy to avoid business rates on empty property is to lease the property out to a third party By leasing the property, you are transferring the responsibility of paying business rates to the tenant This can be a win-win situation for both parties, as the tenant gets a space to operate their business while you avoid paying business rates on the empty property Just make sure to have a solid lease agreement in place to protect your interests and ensure that the tenant is responsible for paying the business rates.

3 Consider Temporary Uses

If you are unable to find a long-term tenant for your empty property, consider temporary uses to generate income and avoid paying business rates avoiding business rates on empty property. Temporary uses could include pop-up shops, events, or even allowing local artists to use the space as a studio By generating temporary income from the property, you may be able to offset the business rates liability and keep the property occupied until a permanent tenant is found Just make sure to check with your local council to see if there are any restrictions on temporary uses and to obtain the necessary permissions.

4 Develop the Property

Another way to avoid paying business rates on empty property is to develop the property for a different use By making improvements to the property and changing its use, you may be able to qualify for a new business rates assessment that could result in lower rates or even exemptions For example, converting a warehouse into residential units may qualify for a different business rates assessment and lower rates However, it is important to check with your local council and a professional advisor to ensure that the proposed development complies with planning regulations and will result in a favorable business rates assessment.

5 Explore Business Rates Relief Schemes

In addition to Empty Property Relief, there are other business rates relief schemes that you may be eligible for to reduce or eliminate your liability on empty property These schemes vary by location and type of property, so it is important to research and explore all available options For example, there may be relief schemes for properties in designated enterprise zones, for charities, or for properties undergoing renovation By taking advantage of these relief schemes, you can significantly reduce your business rates liability and avoid the financial burden of paying rates on empty property.

In conclusion, empty properties can be a financial strain for business owners, especially when they are subject to business rates However, there are ways to avoid paying business rates on empty property by applying for Empty Property Relief, leasing the property out, considering temporary uses, developing the property, and exploring business rates relief schemes By taking proactive steps and exploring all available options, you can reduce or eliminate your business rates liability on empty property and alleviate the financial burden on your business.