As a business owner, one of the last things you want to deal with is high business rates on empty property. Not only does it add an unnecessary financial burden on your company, but it can also hinder potential growth and development. However, there are several strategies you can employ to legally avoid or reduce business rates on empty property.
1. Utilize temporary occupation
One effective strategy for avoiding business rates on empty property is by temporarily occupying the space. Even if you don’t plan on using the property for your business operations, you can explore options such as hosting pop-up events, allowing other businesses to use the space on a short-term basis, or even turning it into a temporary exhibition space. By utilizing the property in this manner, you can potentially qualify for exemptions or discounts on business rates.
2. Apply for charitable relief
If your empty property is being used for charitable purposes, you may be eligible for charitable relief on business rates. This can significantly reduce or eliminate the amount you are required to pay. Make sure to check the specific criteria and requirements for charitable relief in your area, and consider partnering with a recognized charity to take advantage of this potential exemption.
3. Consider small business rate relief
If you are a small business owner with an empty property, you may be eligible for small business rate relief. This scheme is designed to support small businesses by reducing the amount of business rates they are required to pay. Even if the property is empty, you may still qualify for this relief if you meet certain criteria. Be sure to check with your local council to see if you are eligible for this valuable exemption.
4. Demolish or renovate the property
In some cases, demolishing or renovating an empty property can help you avoid or reduce business rates. By carrying out extensive renovations or demolishing the property altogether, you may qualify for exemptions or discounts on business rates. This option requires a significant investment of time and resources, but it can be a worthwhile strategy if you are looking to avoid paying high business rates on an empty property in the long term.
5. Rent out the property
If you are unable to utilize the empty property for your own business operations, consider renting it out to other businesses or individuals. By generating rental income from the property, you can reduce the financial burden of paying business rates on an empty space. Make sure to carefully vet potential tenants and draft a comprehensive rental agreement to protect your interests and maximize your rental income.
6. Explore exemptions and discounts
There are various exemptions and discounts available for business rates on empty property, depending on your specific circumstances. For example, certain types of property may be exempt from business rates altogether, such as agricultural buildings or properties that are undergoing structural repairs. Additionally, you may be eligible for discounts if the property is only temporarily vacant or if it falls within a designated enterprise zone. Be sure to research the options available to you and consult with a professional to determine the best course of action.
7. Appeal the rateable value
If you believe that the rateable value of your empty property is incorrect or unfair, you have the right to appeal. By challenging the rateable value through the appeals process, you may be able to secure a lower valuation and reduce the amount of business rates you are required to pay. Make sure to gather supporting evidence and present a strong case to increase your chances of a successful appeal.
In conclusion, avoiding business rates on empty property is a common concern for business owners, but there are several strategies you can employ to mitigate this financial burden. By utilizing temporary occupation, applying for charitable relief, considering small business rate relief, demolishing or renovating the property, renting out the property, exploring exemptions and discounts, and appealing the rateable value, you can take proactive steps to reduce or eliminate business rates on empty property. Be sure to carefully consider your options and consult with a professional to determine the best approach for your specific circumstances. By taking action now, you can protect your business from unnecessary financial strain and pave the way for future growth and success.