When it comes to owning and managing commercial property, one of the biggest concerns for many business owners is the hefty cost of business rates These rates can be a significant financial burden, especially if the property is sitting empty and not generating any income However, there are several strategies that property owners can implement to help avoid or minimize the impact of business rates on empty properties.
One of the most common ways to avoid business rates on empty property is by temporarily occupying the space with a charity or community organization Under current legislation, buildings that are occupied by charities for charitable purposes are eligible for an 80% discount on business rates By allowing a charity to use the empty property, owners can significantly reduce their business rates liability while also supporting a worthy cause.
Another option for property owners looking to avoid business rates on empty property is to actively market the space for rent or sale By demonstrating that they are actively seeking a tenant or buyer for the property, owners may be able to claim an exemption from business rates for a limited period This can provide some relief from the financial burden of empty property rates while also increasing the likelihood of finding a new occupant for the space.
In some cases, property owners may be able to apply for a temporary exemption from business rates under certain circumstances For example, if the property is undergoing major renovations or repairs that render it temporarily uninhabitable, owners may be able to claim a temporary exemption from business rates It is important to consult with the local council to determine whether the property qualifies for this type of exemption and to ensure that all necessary paperwork is filed in a timely manner.
Property owners may also be able to reduce their business rates liability on empty property by seeking to have the property reclassified for a lower rateable value avoiding business rates on empty property. This can be done by providing evidence to the local council that the property has limited potential for rental or sale due to its condition or location By demonstrating that the property is not suitable for commercial use in its current state, owners may be able to secure a reduction in their business rates liability.
Alternatively, property owners can consider converting the empty property for alternative uses that are exempt from business rates For example, converting the property into residential units or using it for agricultural purposes may make the property eligible for a rates exemption By exploring alternative uses for the property, owners may be able to avoid the financial burden of business rates on empty property while also maximizing the property’s potential value.
In some cases, property owners may choose to demolish the empty property in order to avoid business rates altogether While this may seem like a drastic measure, it can be a viable option for properties that are no longer viable for commercial use and are unlikely to attract tenants or buyers By demolishing the property, owners can eliminate the need to pay business rates on an empty building and potentially recoup some of the costs through the sale of the land or redevelopment of the site.
Overall, there are several strategies that property owners can implement to help avoid or minimize the impact of business rates on empty property By exploring options such as temporary occupation by charities, actively marketing the space, seeking temporary exemptions, reclassifying the property, exploring alternative uses, or even demolishing the property, owners can take proactive steps to reduce their business rates liability and make the most of their empty properties By carefully considering all available options and seeking expert advice where necessary, property owners can effectively manage their business rates obligations and maximize the potential value of their properties.