Business rates can be a significant financial burden for property owners, especially when their properties sit empty for extended periods. However, there are ways to minimize or even avoid paying business rates on empty property. In this article, we will explore some tips for property owners looking to reduce their business rates liability.
1. Understand the Empty Property Rate Relief
The first step in avoiding business rates on empty property is to understand the Empty Property Rate Relief. This relief allows property owners a temporary exemption from paying business rates on certain empty properties. In most cases, properties are exempt from paying business rates for the first three months they are empty. After the initial three-month period, some properties may still qualify for extended relief under certain circumstances.
It is essential to familiarize yourself with the specific criteria for Empty Property Rate Relief in your area to ensure you are taking advantage of all available exemptions.
2. Consider Short-term Leases or Licenses
One effective strategy for avoiding business rates on empty property is to consider short-term leases or licenses. By entering into short-term agreements with tenants, property owners can ensure that their properties are not classified as empty for business rates purposes. Even if the property is only occupied for a short period, it can still potentially qualify for exemptions and relief from business rates.
3. Explore Exemptions and Discounts
In addition to Empty Property Rate Relief, there may be other exemptions and discounts available that can help reduce business rates liability on empty property. For example, properties undergoing renovation or structural repairs may be eligible for exemptions from business rates. Similarly, properties considered to be of historical or architectural interest may qualify for discounts on business rates.
It is worth investigating all available exemptions and discounts in your area to see if your property qualifies for any additional relief from business rates.
4. Utilize the Small Business Rate Relief Scheme
Some property owners may be eligible for the Small Business Rate Relief Scheme, which offers significant discounts on business rates for qualifying properties. This scheme is designed to support small businesses and can provide substantial savings on business rates for eligible properties. By taking advantage of this scheme, property owners can reduce their overall business rates liability and save money on empty properties.
5. Appeal Your Business Rates Assessment
If you believe that your business rates assessment is incorrect or unfairly high, you have the right to appeal the decision. Property owners can appeal their business rates assessment to the Valuation Office Agency (VOA) and provide evidence to support their case. By challenging the assessment, property owners may be able to secure a reduction in their business rates liability, including relief for empty property.
6. Consider Alternative Uses for Empty Property
Finally, one of the most effective ways to avoid business rates on empty property is to consider alternative uses for the space. By generating income from the property, either through leasing to tenants, hosting events, or utilizing it for storage, property owners can mitigate their business rates liability. Even if the property is only partially occupied, any income generated can help offset the costs of business rates on empty portions of the property.
In conclusion, avoiding business rates on empty property is possible with careful planning and consideration of available exemptions and relief schemes. By understanding the Empty Property Rate Relief, exploring short-term leases, utilizing exemptions and discounts, and appealing business rates assessments, property owners can minimize their business rates liability on empty properties. Additionally, considering alternative uses for empty property can help generate income and offset business rates costs. By taking advantage of these tips and strategies, property owners can effectively manage their business rates liability and maximize the value of their vacant properties.