Have you ever owned a commercial property that has been lying empty for a while? If so, you may be aware of the burden of paying business rates on vacant spaces. However, there are ways to avoid this hefty cost and make better use of your investment. In this article, we will explore some strategies to help you save on business rates for your empty property.
Business rates are taxes levied on commercial properties in the UK. They are calculated based on the rateable value of the property and are usually payable by the owner or occupier. When a property remains empty, the owner is still liable to pay these rates, known as empty property rates. This can be a significant financial burden, especially for property owners who are struggling to find tenants or buyers for their vacant spaces. Thankfully, there are ways to reduce or even avoid paying business rates on empty property.
One of the simplest ways to avoid paying business rates on empty property is by applying for an exemption or relief. In some cases, property owners may be eligible for exemptions if their property is undergoing substantial repairs or renovations, or if it is in the process of being reoccupied. There are also specific reliefs available for properties that are owned by charities, community amateur sports clubs, or industrial and warehouse buildings.
Another option to avoid paying business rates on empty property is by temporarily occupying the space with a pop-up shop or short-term lease. By renting out the property for a short period, even if it is not a long-term solution, you can trigger a temporary exemption from empty property rates. This can help you generate some income from the property while also reducing the financial burden of paying full business rates.
Additionally, you can consider applying for rate relief under the Government’s Transitional Relief Scheme. This scheme offers a gradual increase in business rates for vacant properties over a specified period, allowing property owners to ease into full-rate payments once the property is reoccupied. By taking advantage of this relief scheme, you can manage your cash flow better and avoid a sudden increase in business rates when your property becomes occupied again.
Furthermore, property owners can explore the option of demolishing or repurposing their empty buildings to avoid paying business rates altogether. By obtaining planning permission for redevelopment or changing the use of the property, you may be able to trigger a new rateable value assessment, which could result in lower business rates or exemption from empty property rates. This strategy requires careful consideration and planning but can be an effective way to reduce costs and make better use of your property.
In some cases, it may be worth seeking professional advice from a chartered surveyor or business rates specialist to help you navigate the complexities of avoiding business rates on empty property. These experts can provide valuable insights and recommendations based on your specific circumstances, helping you make informed decisions and maximize savings on your property investments.
Finally, property owners can also explore alternative uses for their empty spaces to generate income and avoid paying business rates. For example, renting out the property for events, filming locations, or temporary storage can provide an alternative revenue stream while also triggering exemptions from empty property rates. By thinking creatively and exploring different options, you can make the most of your vacant property and reduce the financial burden of business rates.
In conclusion, paying business rates on empty property can be a significant expense for property owners, but there are ways to avoid or reduce these costs. By exploring exemptions, reliefs, temporary occupations, rate relief schemes, redevelopment opportunities, professional advice, and alternative uses for empty spaces, you can effectively manage your property investments and save on business rates. With careful planning and strategic decision-making, you can turn your empty property into a valuable asset that generates income and contributes to your overall financial success.
Avoid the burden of business rates on empty property and explore these strategies to make the most of your investments.