When it comes to owning commercial property, one of the biggest expenses that business owners face is business rates. These rates can be a significant burden, especially when a property sits empty for an extended period of time. However, there are ways to mitigate this cost and avoid paying business rates on empty property. In this article, we will discuss five strategies that can help you save money on business rates while your property is vacant.
1. Utilize the Small Business Rate Relief scheme
If you own a small business property with a rateable value below a certain threshold, you may be eligible for the Small Business Rate Relief scheme. This scheme allows qualifying businesses to receive a discount on their business rates, which can be particularly helpful if your property is currently empty. By applying for this relief, you can reduce the amount of business rates you are required to pay while your property is unoccupied.
2. Apply for empty property rate relief
In some cases, property owners may be eligible for empty property rate relief, which provides a temporary exemption from paying business rates on a vacant property. This relief is typically available for a limited period of time, such as three or six months, depending on the local authority. By applying for this relief, you can avoid paying business rates on your empty property for a set period, giving you time to find a new tenant or buyer.
3. Consider property guardianship
If you are struggling to find a tenant or buyer for your empty property, you may want to consider property guardianship as a way to avoid paying business rates. Property guardians are individuals or companies who are willing to live in and protect vacant properties in exchange for reduced rent or free accommodation. By placing property guardians in your empty property, you may be able to qualify for a reduction in business rates, as the property is considered to be occupied and therefore exempt from full rates.
4. Explore options for temporary use
Another strategy for avoiding business rates on empty property is to explore options for temporary use. For example, you could rent out your property for short-term events, such as pop-up shops, art exhibitions, or community gatherings. By utilizing your property in this way, you can demonstrate to the local authority that the property is being actively used and potentially qualify for a reduction in business rates. Additionally, generating income from temporary use can help offset the cost of business rates on your empty property.
5. Appeal the rateable value of your property
If you believe that the rateable value of your property is too high, you have the right to appeal to the Valuation Office Agency (VOA) to have it reassessed. By successfully appealing the rateable value of your property, you may be able to reduce the amount of business rates you are required to pay, even while the property is empty. It is important to provide evidence to support your appeal, such as rental agreements, property valuation reports, or comparable properties in the area. With a lower rateable value, you can save money on business rates and make owning an empty property more financially viable.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By utilizing schemes such as Small Business Rate Relief and empty property rate relief, exploring options for temporary use, and appealing the rateable value of the property, you can reduce the financial burden of business rates while your property is vacant. With careful planning and proactive measures, you can save money and make owning commercial property more cost-effective in the long run.