When it comes to owning or managing commercial property, one of the most frustrating expenses can be business rates on empty property Whether you’re a small business owner, property investor, or landlord, having to pay business rates on a property that isn’t generating any income can quickly drain your finances and hinder your ability to make a profit.
However, there are ways to avoid or reduce business rates on empty property In this article, we’ll explore some of the most effective methods for minimizing this expense and protecting your bottom line.
1 Utilize Empty Property Relief
One of the most direct ways to avoid paying business rates on empty property is to take advantage of empty property relief This is a government initiative that provides full relief on business rates for certain types of empty properties for a limited period of time.
For example, if you own a property with a rateable value of under £2,900, you may be entitled to small business rate relief, which could reduce your business rates to zero Additionally, properties that are empty due to structural repairs or undergoing a change in occupancy may also be eligible for relief.
It’s important to check with your local council to see if your property qualifies for empty property relief and to follow the necessary steps to apply for this benefit By utilizing this relief, you can significantly reduce the financial burden of paying business rates on empty property.
2 Make Use of Exemptions and Discounts
In addition to empty property relief, there are also exemptions and discounts available that can help you avoid paying business rates on empty property For example, properties owned by charities or community amateur sports clubs may be eligible for 80% mandatory relief on their business rates.
Similarly, properties that are empty due to legal action or undergoing structural repairs may be entitled to a complete exemption from business rates for a certain period of time By taking advantage of these exemptions and discounts, you can ensure that you’re not overburdened with unnecessary expenses while your property is vacant.
3 avoiding business rates on empty property. Consider Temporary Reoccupation
If your property has been empty for an extended period of time and you’re struggling to afford the business rates, it may be worth considering temporary reoccupation as a short-term solution By allowing a temporary tenant or pop-up business to occupy the space, you can trigger a fresh empty property rate period, which could provide you with additional time to find a long-term tenant or buyer.
While this approach may require some upfront costs to make the property suitable for temporary use, the potential savings on business rates could outweigh the initial investment Just be sure to carefully vet any potential occupant to ensure that they’re a reputable and reliable tenant.
4 Negotiate with Your Local Council
In some cases, your local council may be willing to negotiate a payment plan or offer a reduction in business rates on empty property, especially if you can demonstrate that you’re actively seeking tenants or buyers for the property By explaining your financial situation and presenting a viable plan for filling the vacancy, you may be able to secure more favorable terms with the council.
It’s important to maintain open communication with your local council and provide regular updates on your progress in marketing the property By being proactive and transparent, you can increase the likelihood of reaching a mutually beneficial agreement that helps you avoid excessive business rates on empty property.
5 Explore Alternative Uses for the Property
If finding a traditional tenant for your property proves challenging, you may want to consider exploring alternative uses that could generate income and help offset the cost of business rates For example, you could convert the property into a storage facility, event space, or coworking…