Owning a vacant property can be a financial burden, especially when it comes to paying business rates on empty commercial buildings. Business rates are taxes that businesses in the UK must pay based on the rateable value of their property. However, there are ways to avoid paying business rates on empty property and reduce the financial strain.
Here are some tips to help property owners navigate the process of avoiding business rates on empty property:
1. Use the Small Business Rates Relief Scheme: If your property has a rateable value of less than £12,000, you may qualify for the Small Business Rates Relief Scheme. This scheme provides relief on business rates for small businesses and can help reduce or eliminate the amount of business rates you have to pay on your empty property.
2. Apply for Empty Property Relief: Property owners can apply for Empty Property Relief, which provides relief from paying business rates on empty commercial or industrial properties. The relief is available for the first three or six months, depending on the type of property. Some local councils may also offer additional relief for longer periods of vacancy.
3. Use the Property as a Charity or Community Amateur Sports Club: If your property is used by a registered charity or a Community Amateur Sports Club (CASC), you may be eligible for 80% relief on your business rates. By allowing these types of organizations to use your property, you can reduce the amount of business rates you have to pay on your empty building.
4. Utilize the Property for Temporary or Seasonal Business: Another option to avoid paying business rates on empty property is to use the building for temporary or seasonal business purposes. By renting out the property for pop-up shops, events, or short-term leases, you can generate income and avoid paying business rates during periods of vacancy.
5. Consider Demolishing or Redeveloping the Property: If your property is no longer viable for commercial use, you may want to consider demolishing or redeveloping the building. Vacant land or properties undergoing redevelopment may be eligible for relief or exemption from business rates, providing savings for property owners.
6. Negotiate with the Local Council: Property owners facing financial hardship due to paying business rates on empty property can negotiate with the local council for a reduction or waiver of the rates. Councils may be willing to offer discretionary relief in certain circumstances, such as economic downturns or unforeseen circumstances impacting the property.
7. Keep the Property Secure and Well-Maintained: To avoid paying unnecessary business rates on empty property, it is essential to keep the building secure and well-maintained. Empty properties are at risk of vandalism, theft, and damage, which can lead to additional costs for property owners. By taking care of the property, owners can reduce the risk of incurring extra expenses and maintain the value of the building.
8. Seek Professional Advice: Navigating the complexities of business rates on empty property can be challenging for property owners. Seeking advice from a qualified chartered surveyor, property consultant, or tax advisor can help to identify potential savings and strategies for avoiding business rates on empty property. These professionals can provide expert guidance on eligibility for relief schemes, exemptions, and negotiation with the local council.
In conclusion, there are several strategies property owners can implement to avoid paying business rates on empty property. From utilizing relief schemes and exemptions to exploring alternative uses for the property, there are ways to reduce the financial burden of owning vacant commercial buildings. By staying informed, proactive, and seeking professional advice when needed, property owners can navigate the process of avoiding business rates on empty property effectively.