Business rates can be a significant financial burden for property owners, especially when their buildings sit empty In the UK, empty commercial properties are subject to business rates, which can add up to thousands of pounds per year Fortunately, there are ways to avoid or reduce these rates, giving property owners some relief on their bottom line In this article, we will discuss five smart strategies to help property owners avoid business rates on empty property.
1 Temporary Occupation
One way to avoid business rates on empty property is to find a temporary occupation for the space This could be through leasing the property to a pop-up shop, hosting events, or even renting out the space for short-term use By having a temporary occupant in the property, it may qualify for an exemption from business rates for a period of up to six months.
Property owners can also explore options like letting the property to charities or community groups These organizations are usually exempt from business rates, which means that the property owner won’t be liable for the rates during their occupation Additionally, hosting events or exhibitions in the empty property can also serve as a way to generate income while avoiding business rates.
2 Renovation and Redevelopment
Another effective strategy to avoid business rates on empty property is to carry out renovations or redevelopment on the building In some cases, properties undergoing significant renovations may be eligible for a full exemption from business rates for a certain period Property owners can take advantage of this by investing in upgrading the property to attract new tenants or buyers.
Renovations can range from minor cosmetic updates to major structural enhancements, depending on the needs of the property By making the property more appealing and functional, property owners can increase its market value and potentially attract new occupants This not only helps to avoid business rates on empty property but also positions the property for long-term success.
3 Vacant Property Relief
Property owners may be eligible for vacant property relief, which provides a discount on business rates for certain types of empty properties This relief is available for properties that have been empty for a certain period, typically three months or more avoiding business rates on empty property. The amount of relief can vary depending on the property’s location and classification, so it’s important to check with the local council to see if the property qualifies.
To qualify for vacant property relief, property owners may need to provide evidence that the property is genuinely empty and not in use This could include utility bills, security measures, or other documentation to support the claim By taking advantage of vacant property relief, property owners can reduce the financial burden of business rates on empty property and preserve their cash flow.
4 Temporary Occupation Relief
In some cases, properties that are undergoing renovation or redevelopment may qualify for temporary occupation relief This relief provides a discount on business rates for properties that are not in use due to building work or alterations Property owners can apply for temporary occupation relief to reduce the financial impact of business rates while the property is being improved.
To qualify for temporary occupation relief, property owners may need to provide evidence of the renovation work being carried out and the expected completion date The relief is typically granted for a limited period, so property owners should plan their renovation schedule accordingly to maximize the benefits of this relief By taking advantage of temporary occupation relief, property owners can save money on business rates and invest in the future of their property.
5 Use of Small Business Rates Relief
Small businesses occupying empty property for the first time may be eligible for small business rates relief This relief provides a significant discount on business rates for qualifying small businesses, helping to reduce the financial burden on property owners To qualify for small business rates relief, the property must be used for business purposes and meet certain eligibility criteria.
Property owners can explore the option of leasing their empty property to small businesses to take advantage of this relief By attracting small businesses to the property, property owners can generate rental income and potentially avoid business rates altogether This strategy not only benefits the property owner but also supports small businesses in their growth and development.
In conclusion, there are several smart ways for property owners to avoid business rates on empty property By exploring options like temporary occupation, renovation and redevelopment, vacant property relief, temporary occupation relief, and small business rates relief, property owners can reduce the financial burden of business rates and maximize the potential of their empty properties With careful planning and strategic decision-making, property owners can turn their empty properties into valuable assets while saving money on business rates.