When it comes to owning vacant commercial property, one of the major concerns for owners is the financial burden of paying business rates on an empty building. This can be especially challenging for property owners who are already facing financial strain. However, there are a number of strategies that property owners can employ to avoid or reduce the amount of business rates they are required to pay on their empty property. In this article, we will explore seven tips for avoiding business rates on empty property.
1. Utilize the Small Business Rates Relief Scheme
One of the most effective ways to avoid paying business rates on empty commercial property is to take advantage of the Small Business Rates Relief Scheme. This scheme is designed to provide financial aid to small businesses and property owners who are struggling to pay their business rates. Qualifying properties can receive a discount of up to 100% on their business rates, providing significant savings for property owners.
2. Qualify for Empty Property Relief
Another option for property owners looking to avoid business rates on empty property is to apply for Empty Property Relief. This relief is available to property owners who have a vacant property that has been unoccupied for a certain period of time. Depending on the location and type of property, owners may qualify for a partial or full exemption from paying business rates on their empty property.
3. Renovate or Repurpose the Property
One way to avoid business rates on empty property is to renovate or repurpose the building in order to bring it back into use. By making the property suitable for occupancy, property owners may be able to qualify for a temporary exemption from paying business rates. This not only helps to avoid the financial burden of empty property rates, but also allows owners to generate income from rental or lease agreements.
4. Consider Short-Term Leases or Licenses
Property owners can also consider entering into short-term leases or licenses with temporary tenants in order to avoid paying business rates on empty property. By allowing a tenant to occupy the property for a short period of time, owners may be able to qualify for Empty Property Relief or other exemptions from paying business rates. This can help to minimize the financial impact of owning vacant property while still generating some income.
5. Appeal the Rateable Value
If property owners believe that the rateable value of their empty property is inaccurate or unfairly high, they have the right to appeal the valuation. By providing evidence to support a lower rateable value, owners may be able to reduce the amount of business rates they are required to pay on their empty property. It is important to seek professional advice when appealing a rateable value in order to ensure the best possible outcome.
6. Keep the Property Secure and Well-Maintained
Maintaining the security and appearance of an empty property is essential for avoiding business rates. Property owners should take steps to keep the property secure and well-maintained in order to reduce the risk of vandalism or deterioration. By demonstrating that the property is being actively maintained and protected, owners may be able to qualify for exemptions or reductions in business rates.
7. Seek Professional Advice
Finally, property owners who are struggling to avoid business rates on empty property should seek professional advice from a qualified property advisor or consultant. These experts can provide valuable guidance and assistance in navigating the complexities of business rates and finding the best solutions for reducing or eliminating the financial burden of owning vacant property. By working with a professional, property owners can ensure that they are taking full advantage of all available options for avoiding business rates on empty property.
In conclusion, owning vacant commercial property can be a financial challenge, especially when faced with the burden of paying business rates on empty buildings. However, by utilizing the Small Business Rates Relief Scheme, applying for Empty Property Relief, renovating or repurposing the property, considering short-term leases, appealing the rateable value, maintaining property security, and seeking professional advice, property owners can effectively avoid or reduce the amount of business rates they are required to pay on their empty property. By taking proactive steps and exploring all available options, property owners can minimize the financial impact of owning vacant property and maximize their potential for generating income from their investments.