Strategies To Avoid Business Rates On Empty Property

Business rates can be a hefty expense for property owners, especially when their buildings sit empty In the UK, owners are required to pay business rates on empty commercial properties unless they qualify for certain exemptions or relief However, there are strategies that property owners can implement to minimize or even avoid paying these rates altogether In this article, we will explore some effective ways to avoid business rates on empty property.

1 Temporary Occupation

One strategy to avoid paying business rates on an empty property is to secure temporary occupation By allowing a temporary tenant to occupy the property, even for a short period of time, the property may qualify for exemption from business rates This can be a win-win situation for both parties, as the temporary occupant gets to use the space while the property owner avoids the burden of paying full business rates.

2 Property Guardians

Another option for property owners looking to avoid business rates on empty properties is to hire property guardians Property guardians are individuals or companies that provide live-in security for vacant buildings in exchange for lower rent By having property guardians occupy the building, the property may qualify for exemption from business rates Additionally, property guardians can help deter vandalism and other issues that often arise in vacant buildings.

3 Charitable Occupation

Property owners can also explore the option of allowing charitable organizations to occupy their empty properties In some cases, properties occupied by registered charities may be eligible for relief or exemption from business rates By partnering with a charitable organization, property owners can benefit from reduced costs while supporting a good cause.

4 Renovation or Refurbishment

Property owners can also consider renovating or refurbishing their empty properties to avoid paying business rates avoiding business rates on empty property. Properties that are undergoing substantial renovation or refurbishment may qualify for exemption from business rates for a certain period of time This strategy not only helps property owners save money on business rates but also adds value to the property in the long run.

5 Repurposing the Property

Another effective strategy to avoid business rates on empty property is to repurpose the building for a different use By changing the purpose of the property, owners may be able to qualify for relief or exemption from business rates For example, converting a vacant office building into residential units or a community center can provide opportunities for business rates relief.

6 Vacant Property Relief

Property owners should also be aware of vacant property relief, which provides a 100% exemption from business rates for certain types of properties Properties that are newly built or being redeveloped may qualify for this relief for a limited period of time This can offer significant cost savings for owners of empty properties.

7 Challenge the Rateable Value

Property owners who believe that the rateable value of their empty property is inaccurate or unfair can challenge the valuation with the Valuation Office Agency (VOA) By providing evidence to support their case, owners may be able to secure a lower rateable value and reduce their business rates liability It is important for property owners to regularly review their rateable value and consider challenging it if necessary.

In conclusion, there are several effective strategies that property owners can implement to avoid paying business rates on empty properties Whether through temporary occupation, property guardianship, charitable occupation, renovation, repurposing, vacant property relief, or challenging the rateable value, owners have options to minimize or eliminate this costly expense By exploring these strategies and staying informed about the latest regulations and exemptions, property owners can successfully navigate the challenges of business rates on empty property.