How To Avoid Business Rates On Empty Property

When it comes to owning a commercial property, one of the biggest concerns for property owners is the business rates that come with it Business rates are taxes that are levied on non-residential properties in the UK, and they can be a significant financial burden for property owners, especially if the property is sitting empty However, there are ways to avoid paying business rates on empty property, and in this article, we will explore some of the most effective strategies for doing so.

1 Temporary occupation

One of the most common ways to avoid paying business rates on empty property is to temporarily occupy the property with a temporary tenant By doing so, the property is classed as occupied, and therefore exempt from business rates for a certain period of time This can be a great option for property owners who are struggling to find a long-term tenant but want to avoid paying business rates in the meantime.

2 Charity occupation

Another effective way to avoid business rates on empty property is to allow a registered charity to occupy the property Charities are exempt from paying business rates on the properties they occupy, so by allowing a charity to use the property, property owners can avoid paying business rates altogether This is a win-win situation, as charities often struggle to find affordable space to operate, so by offering up empty properties to charities, property owners can support a good cause while also saving money on business rates.

3 Partial occupation

If it is not possible to fully occupy the property with a temporary tenant or charity, property owners can consider partial occupation By dividing the property into smaller units and letting out a portion of it, property owners can potentially reduce the amount of business rates they have to pay avoiding business rates on empty property. This can be a more practical option for larger properties that are difficult to fill completely, and it can help property owners to generate some income from the property while also saving money on business rates.

4 Renovation or refurbishment

Another way to avoid paying business rates on empty property is to carry out renovation or refurbishment works on the property Properties that are undergoing substantial renovation or refurbishment are often exempt from business rates for a certain period of time, so by investing in improving the property, property owners can save money on business rates while also increasing the property’s value and attractiveness to potential tenants in the future.

5 Vacant property relief

In some cases, property owners may be able to claim vacant property relief, which provides a 50% discount on business rates for properties that have been empty for a certain period of time To qualify for vacant property relief, the property must be completely empty and not used for any business purposes Property owners can apply for vacant property relief through their local council, and if approved, they can benefit from a significant reduction in their business rates bill.

Overall, there are several effective strategies that property owners can use to avoid paying business rates on empty property By considering options such as temporary occupation, charity occupation, partial occupation, renovation or refurbishment, and vacant property relief, property owners can minimize their financial burden while also maximizing the potential of their empty properties With careful planning and strategic decision-making, property owners can navigate the complexities of business rates and ensure that their properties remain profitable and valuable assets in the long term

By implementing these strategies, property owners can avoid the hefty costs of business rates on empty property and make the most of their investments in the commercial property market