Empty business properties can be a significant financial burden for owners, especially when they are subject to business rates These rates are taxes that business owners must pay to their local council for the non-domestic property they occupy However, there are ways to avoid or reduce business rates on empty property, which can help alleviate some of the financial strain In this article, we will explore some strategies that property owners can use to minimize their business rates liability.
One of the most common ways to avoid business rates on empty property is by applying for an exemption or relief The government provides various reliefs that property owners can qualify for depending on their circumstances For example, properties that are used for industrial purposes may be eligible for industrial relief, while certain charities may qualify for charitable rate relief It is important for property owners to carefully review the eligibility criteria for each relief and apply for them accordingly.
Another strategy for reducing business rates on empty property is by making short-term use of the property For example, property owners can consider renting out the space on a temporary basis to pop-up shops, events, or community groups By demonstrating that the property is being actively used, owners may be able to qualify for a temporary use relief, which can provide a significant reduction in business rates Additionally, showcasing the property in this way can help attract potential long-term tenants and generate additional income in the meantime.
Property owners can also explore the option of demolishing or renovating the empty property to avoid business rates Councils typically do not charge rates on properties that are undergoing significant structural changes, such as demolition or renovation By investing in improving the property, owners can not only avoid paying rates but also increase the value of the property for future tenants avoiding business rates on empty property. It is crucial for property owners to inform their local council of any changes to the property to ensure that they are not charged unnecessary rates during the renovation process.
Another way to avoid business rates on empty property is by considering a change of property use Owners can explore converting the property into a different type of business that may be eligible for lower rates or reliefs For example, converting an office building into residential units may qualify for council tax rather than business rates However, it is important for property owners to ensure that the new use complies with local planning regulations and obtain the necessary permits before making any changes to the property.
Finally, property owners can consider appealing their business rates assessment if they believe it is inaccurate Councils determine business rates based on factors such as the size, location, and condition of the property If owners believe that their rates are too high due to errors in the assessment, they can file an appeal with the Valuation Office Agency (VOA) The VOA will review the assessment and make any necessary adjustments to ensure that owners are paying the correct amount of rates.
In conclusion, there are multiple strategies that property owners can use to avoid or reduce business rates on empty property By applying for exemptions or relief, making short-term use of the property, demolishing or renovating the property, changing the property use, or appealing the rates assessment, owners can minimize their rates liability and alleviate some of the financial burden associated with empty properties It is essential for owners to carefully evaluate their options and work with their local council to find the best solution for their specific circumstances By taking proactive steps to mitigate business rates on empty property, owners can protect their finances and potentially attract new tenants to their properties in the future.