Business rates can be a significant expense for property owners, particularly when a property is sitting empty and not generating any income. Fortunately, there are ways to legally avoid or reduce business rates on empty property. In this article, we will explore some of the options available to property owners looking to minimize their business rate liability.
One of the simplest ways to avoid business rates on empty property is to claim an exemption. In England, for example, most properties are eligible for a three-month exemption from business rates when they first become empty. This initial three-month period gives property owners some breathing room to find a new tenant or make necessary renovations to the property.
After the initial three-month exemption period has passed, property owners can still apply for further exemptions in certain circumstances. For example, properties that are listed buildings or are undergoing major renovation work may be eligible for longer exemptions from business rates. Property owners should check with their local authority to see if their empty property qualifies for any additional exemptions.
Another option for avoiding business rates on empty property is to apply for temporary relief. In some cases, properties that are only temporarily empty due to unforeseen circumstances, such as a sudden downturn in the property market or unexpected building repairs, may be eligible for relief from business rates. Property owners should contact their local authority to see if they qualify for temporary relief and how to apply for it.
Property owners can also reduce their business rate liability on empty property by negotiating a lower rate with their local authority. In some cases, local authorities may be willing to offer a discount on business rates for properties that have been empty for a certain period of time or are in need of significant repair. Property owners should be prepared to provide evidence of the property’s condition and any efforts they have made to find a new tenant in order to support their request for a lower rate.
Another strategy for avoiding business rates on empty property is to consider leasing the property on a short-term basis. By leasing the property to a short-term tenant, even for a nominal rent, property owners may be able to avoid or reduce their business rate liability. This option can be particularly beneficial for properties that are likely to be empty for an extended period of time, as it can help generate some income while the property is vacant.
Property owners should also be aware of the rules around occupation of empty property and how they can affect business rates liability. In some cases, simply having a security guard or caretaker living on the property may be enough to trigger business rates liability, even if the property is otherwise empty. Property owners should carefully review the rules around occupation of empty property in their area to ensure they are not inadvertently increasing their business rate liability.
Finally, property owners should consider seeking professional advice from a qualified surveyor or business rates specialist. These professionals can help property owners understand their rights and obligations when it comes to business rates on empty property, as well as identify any potential opportunities for reducing their liability. By working with a specialist, property owners may be able to save money on business rates and make their empty property more financially viable in the long run.
In conclusion, there are several ways for property owners to avoid or reduce business rates on empty property. By taking advantage of exemptions, temporary relief, negotiations with local authorities, short-term leasing options, and professional advice, property owners can minimize their business rate liability and make their empty property more financially sustainable. By being proactive and informed, property owners can ensure that they are not paying more in business rates than necessary on their empty property.