Business rates can be a significant financial burden for property owners, especially when the property is vacant. However, there are ways to minimize or completely avoid paying business rates on empty property. In this article, we will explore some of the strategies that property owners can use to reduce their business rates liability and save money.
One common way to avoid paying business rates on empty property is by claiming an exemption or relief. Empty properties are eligible for a range of exemptions and reliefs, depending on the circumstances. For example, properties that are undergoing major structural repairs or are newly built may be eligible for a full exemption from business rates for a set period of time. Property owners should check with their local council to see if their property qualifies for any exemptions or reliefs.
Another strategy to avoid business rates on empty property is to actively market the property for rent or sale. If the property is being actively marketed, it may be eligible for an exemption from business rates for a set period of time. Property owners should make sure that they are taking steps to actively market the property, such as listing it on commercial real estate websites, working with local real estate agents, and attending property networking events.
Property owners can also consider demolishing or refurbishing the property to avoid paying business rates on an empty building. In some cases, properties that are undergoing refurbishment or demolition may be eligible for a reduction in business rates or a full exemption for a set period of time. Property owners should consult with their local council to see if their planned works would qualify for any exemptions or reliefs.
Additionally, property owners should consider redeveloping the property to avoid business rates on empty land. Land that is being actively developed may be eligible for a reduction in business rates or a full exemption for a set period of time. Property owners should be aware that some councils may require a development plan or timeline before granting any exemptions or reliefs, so it is important to communicate with the council throughout the development process.
Property owners can also consider leasing the property to a charity or community group to avoid paying business rates on empty property. Charities and community groups are eligible for an 80% discount on business rates, so leasing the property to a qualifying organization can significantly reduce the business rates liability. Property owners should make sure that the charity or community group meets the eligibility criteria for business rates relief before entering into a lease agreement.
Another option for property owners looking to avoid business rates on empty property is to negotiate a temporary letting or license agreement. By temporarily letting the property to a short-term tenant, property owners can avoid paying business rates on the empty property. Property owners should make sure that the temporary letting agreement is properly drafted to protect their interests and comply with any lease restrictions.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By claiming exemptions or reliefs, actively marketing the property, demolishing or refurbishing the property, redeveloping the land, leasing to a charity or community group, or negotiating a temporary letting agreement, property owners can reduce their business rates liability and save money. Property owners should consult with their local council and a qualified real estate professional to explore all available options for avoiding business rates on empty property.