Empty property can be a burden for any business owner, especially when it comes to paying business rates on a property that is not generating any income. However, there are ways to avoid paying business rates on empty property that can help alleviate some of the financial strain. In this article, we will discuss five effective strategies that business owners can use to avoid paying business rates on empty property.
1. Temporary occupation
One way to avoid paying business rates on empty property is to temporarily occupy the property with a short-term lease or licence agreement. By allowing another party to occupy the property even for a short period of time, the property can be considered occupied and therefore exempt from business rates. This could include renting out the property for events, pop-up shops, or temporary office space.
2. Property renovation
Another way to avoid paying business rates on empty property is to carry out renovations on the property. It is important to note that renovations must be substantial in order to qualify for an exemption from business rates. This could include structural alterations, refurbishments, or improvements that significantly change the property. By actively renovating the property, it is considered unusable for a period of time and therefore exempt from business rates.
3. Empty property relief
Business owners may be eligible for empty property relief, which provides a temporary exemption from paying business rates on empty properties. This relief is typically available for a limited period of time, such as three or six months, depending on the location of the property. By applying for empty property relief, business owners can save money on business rates while they work to find a new tenant or occupant for the property.
4. Small business rate relief
Small business rate relief is another option for business owners looking to avoid paying business rates on empty property. This relief is available to businesses that meet certain criteria, such as having only one property or occupying a property with a rateable value below a certain threshold. By qualifying for small business rate relief, business owners may be able to reduce or eliminate their business rates on empty property, providing valuable financial savings.
5. Charity exemption
Finally, business owners may be able to avoid paying business rates on empty property by working with a registered charity. Under certain circumstances, properties that are occupied by registered charities for charitable purposes are exempt from paying business rates. By partnering with a charity to occupy the property, business owners can not only avoid paying business rates but also support a good cause in the community.
In conclusion, there are several effective strategies that business owners can use to avoid paying business rates on empty property. By exploring options such as temporary occupation, property renovation, empty property relief, small business rate relief, and charity exemption, business owners can save money on business rates while managing their empty properties. It is important for business owners to carefully consider their individual circumstances and consult with a professional advisor to determine the best strategy for avoiding business rates on empty property. With the right approach, business owners can successfully navigate the challenges of empty property ownership and mitigate the financial impact of business rates.