When it comes to owning commercial property, one of the biggest expenses that owners face is business rates These rates are a tax imposed on non-domestic properties, including offices, shops, and warehouses However, one major concern for property owners is the business rates that still need to be paid even when the property is vacant Fortunately, there are strategies that owners can implement to minimize or even avoid business rates on their empty properties.
Business rates are a significant cost for property owners, and paying them on a vacant property can be a major financial burden The government charges these rates to cover the cost of providing local services such as police, fire, and transportation However, many property owners feel that it is unfair to be charged business rates on empty properties, especially when they are not generating any income.
One strategy that property owners can use to avoid paying business rates on empty properties is to make sure that the property falls within the exemptions provided by the government In some cases, properties that are undergoing major renovation or reconstruction work may be exempt from paying business rates Owners should check with their local council to see if their property qualifies for this exemption.
Another option for property owners is to prove that their property is genuinely incapable of occupation This could include situations where the property is structurally unsound or in need of major repairs that make it unsafe for use In such cases, owners can apply for a temporary exemption from paying business rates until the property is once again fit for occupation.
Property owners can also consider letting their empty property to charities or community groups Properties that are used for charitable purposes are eligible for a mandatory 80% discount off their business rates avoiding business rates on empty property. By allowing a charity or community group to use their property, owners can significantly reduce their business rates liability.
Furthermore, property owners can consider appealing their business rates assessment The rateable value of a property is determined by the Valuation Office Agency (VOA), and owners have the right to challenge this valuation if they feel it is inaccurate By providing evidence of comparable properties in the area or any other relevant factors, owners may be able to negotiate a lower rateable value for their property.
One creative strategy that property owners can use to avoid paying business rates on empty properties is to consider turning it into a temporary pop-up space By collaborating with local artists, entrepreneurs, or start-up businesses, owners can host events or exhibitions in their empty property This not only helps to activate the space but can also generate some income to offset the business rates liability.
Owners should also carefully consider the timing of when their property becomes vacant Business rates are charged after a property has been empty for a certain period, usually three months for industrial properties and six months for other types of commercial properties By planning ahead and timing the vacancy of their property strategically, owners can avoid paying business rates altogether.
In conclusion, business rates on empty properties can be a significant financial burden for property owners However, by employing some of the strategies mentioned above, owners can minimize or even avoid paying these rates Whether it is through exemptions, temporary exemptions, letting to charities, appealing the assessment, or turning the property into a pop-up space, there are ways for owners to reduce the impact of business rates on their empty properties By being proactive and exploring these options, property owners can better manage their finances and make the most out of their vacant properties.