Business rates can be a significant cost for property owners, especially when a property sits empty. In the UK, business rates are charged on most non-domestic properties, including commercial buildings, warehouses, and shops. Fortunately, there are several strategies that property owners can employ to avoid or reduce business rates on empty property.
One of the main ways to avoid paying business rates on empty property is to claim an exemption. In England, properties that have been empty for three months or less are eligible for a temporary exemption from business rates. This exemption can be extended to six months for industrial properties. Property owners must apply to their local council to claim this exemption.
Another exemption that property owners can take advantage of is the Small Business Rate Relief. This relief is available to businesses that only use one property and have a rateable value below a certain threshold. If a property owner meets the criteria for Small Business Rate Relief, they may not have to pay any business rates on their empty property.
In some cases, property owners can also benefit from the Empty Property Relief scheme. Under this scheme, properties that have been empty for more than three months may be eligible for a discount on their business rates. The rate of relief varies depending on the local council’s policies, but property owners can typically expect a discount of up to 100% for the first three months and 50% for the following three months.
Property owners should also be aware of the different rates and reliefs available in the devolved nations of the UK. In Scotland, for example, properties that have been empty for three months are eligible for a 10% discount on their business rates. This discount can be extended for up to 12 months in certain circumstances. Similarly, in Wales, properties that have been empty for three months are eligible for a 50% discount on their business rates for the first three months and a 100% discount for the following three months.
Another important strategy for avoiding business rates on empty property is to actively market the property for rent or sale. If a property owner can demonstrate that they are actively trying to find a tenant or buyer for their empty property, they may be able to claim an exemption from business rates. Property owners should keep records of their marketing efforts, such as listing the property on commercial real estate websites and working with estate agents.
Property owners may also consider exploring other ways to generate income from their empty property. For example, they could consider renting out the property for temporary or short-term uses, such as hosting events or pop-up shops. By generating income from the property, property owners may be able to offset the cost of business rates while they look for a long-term tenant.
It’s important for property owners to keep up with changes in business rates policy and seek expert advice when necessary. The rules and regulations surrounding business rates can be complex and vary depending on the location and type of property. Property owners should consult with a qualified professional, such as a surveyor or tax advisor, to ensure they are taking advantage of all available exemptions and reliefs.
In conclusion, there are several strategies that property owners can employ to avoid or reduce business rates on empty property. By claiming exemptions, actively marketing the property, exploring temporary uses, and seeking expert advice, property owners can minimize the financial burden of business rates while they wait for a long-term tenant. By staying informed and proactive, property owners can successfully navigate the complexities of business rates on empty property.