As a business owner, the last thing you want to worry about is paying business rates on an empty property. Unfortunately, when a property is left vacant, it is still subject to business rates unless certain exemptions apply. In this article, we will explore some strategies to help you avoid business rates on empty property and save you money in the long run.
First and foremost, it is important to understand the rules and regulations surrounding business rates on empty property. In most cases, properties are exempt from paying business rates for the first three months they are empty. However, after this initial period, the property owner is usually required to pay the full rates unless they qualify for an exemption.
One common exemption is if the property is small and has a rateable value below a certain threshold. Properties with a rateable value of less than £2,900 are usually exempt from paying business rates, while properties with a rateable value between £2,900 and £12,000 may qualify for small business rate relief. It is important to check the rateable value of your property and see if it falls within these thresholds to determine if you are eligible for an exemption.
Another way to avoid paying business rates on empty property is to actively market and advertise the property for rent or sale. If you can prove that you are taking steps to find a tenant or buyer for the property, you may be able to apply for an exemption known as the empty property relief. This exemption can last for up to 12 months or until the property is occupied, whichever comes first. By actively marketing the property, you not only increase the chances of finding a tenant but also save money on business rates in the meantime.
Additionally, consider looking into other exemptions and reliefs that may apply to your specific situation. For example, properties undergoing renovations or structural repairs may be eligible for exemptions, as well as properties that are being used for charitable purposes or by community amateur sports clubs. By exploring all possible exemptions and reliefs, you can potentially save a significant amount of money on business rates for your empty property.
Furthermore, consider speaking with your local council about any discretionary relief options that may be available to you. While not all councils offer discretionary relief, some may be willing to provide assistance on a case-by-case basis. By presenting your case and demonstrating the efforts you have made to fill the property, you may be able to negotiate with the council and find a solution that works for both parties.
In addition to exemptions and reliefs, consider exploring alternative uses for your empty property to avoid paying business rates. For example, you could temporarily rent out the space for events, pop-up shops, or storage to generate income and keep the property occupied. By finding creative ways to utilize the property, you not only avoid paying business rates but also generate revenue in the process.
Lastly, consider seeking professional advice from a chartered surveyor or business rates specialist to help you navigate the complex rules and regulations surrounding business rates on empty property. They can provide valuable insights and guidance on how to minimize your costs and maximize your savings. Additionally, they can assist you in identifying any potential exemptions or reliefs that may apply to your specific situation.
In conclusion, avoiding business rates on empty property requires careful planning and proactive measures. By understanding the rules and regulations, actively marketing the property, exploring exemptions and reliefs, considering alternative uses, and seeking professional advice, you can effectively reduce your costs and save money in the long run. With the right strategies in place, you can successfully navigate the challenges of owning an empty property and turn it into a profitable investment.