Business rates can be a significant financial burden for property owners, especially when a property is sitting empty. In the UK, owners of vacant commercial properties are required to pay business rates, which can add up quickly and eat into profits. However, there are strategies that property owners can employ to avoid paying business rates on empty property. By being proactive and strategic, property owners can minimize this financial burden and potentially save thousands of pounds. In this article, we will explore five strategies for avoiding business rates on empty property.
1. Temporary Occupation
One of the most effective strategies for avoiding business rates on empty property is to temporarily occupy the space. By bringing in temporary tenants or using the property for short-term events, property owners can qualify for exemptions from business rates. For example, if a property is occupied for less than six weeks, owners are not required to pay business rates during that time. This strategy not only helps to avoid business rates but also generates some income for the property owner.
2. Renovation or Repairs
Another way to avoid paying business rates on empty property is to show that the property is undergoing renovation or repairs. Properties that are in the process of being refurbished or repaired may qualify for a temporary exemption from business rates. Owners need to provide evidence of the renovation work, such as building permits or contractor invoices, to support their claim for exemption. This strategy not only helps to save money on business rates but also improves the property and enhances its value for future tenants.
3. Check for Exemptions
Property owners should also explore potential exemptions that may apply to their empty property. Some properties may qualify for exemptions from business rates, such as buildings that are used for storage or agricultural purposes. Owners should research the specific criteria for exemptions in their area and see if their property meets the requirements. By taking advantage of exemptions, property owners can significantly reduce or eliminate their business rates liability.
4. Appeal the Rateable Value
If property owners believe that the rateable value of their property is too high, they have the option to appeal the valuation to the Valuation Office Agency (VOA). By providing evidence of the property’s true value, owners may be able to lower their rateable value and reduce their business rates bill. It’s important to gather supporting documentation, such as recent property valuations or rental comparables, to strengthen their case for a lower valuation. While the appeal process can be lengthy, it can result in substantial savings on business rates in the long run.
5. Utilize Empty Property Relief
Property owners should also explore the option of Empty Property Relief, which provides a 100% exemption from business rates for certain types of empty properties. To qualify for this relief, the property must be unoccupied for a specified period, usually three months or more. Owners need to notify their local council of the property’s vacancy and apply for Empty Property Relief to take advantage of this exemption. This relief can provide significant savings for property owners and help to alleviate the financial burden of paying business rates on empty property.
In conclusion, business rates on empty property can be a costly expense for property owners. However, by employing strategic tactics and being proactive, owners can minimize this financial burden and potentially save thousands of pounds. From temporary occupation to appealing the rateable value, there are several strategies that property owners can use to avoid paying business rates on empty property. By exploring these options and taking advantage of available exemptions and reliefs, property owners can effectively reduce their business rates liability and protect their bottom line.