Empty properties can be a burden for business owners, especially when they come with additional costs such as business rates However, there are ways to avoid paying business rates on empty property legally In this article, we will discuss five tips to help you minimize or eliminate the business rates on your vacant property.
1 Apply for Empty Property Relief
One of the most common ways to avoid paying business rates on empty property is to apply for Empty Property Relief This relief is granted by the local council and can provide you with a temporary break from paying business rates on your vacant property.
To qualify for Empty Property Relief, your property must be completely unoccupied and have been empty for at least three months You will need to apply directly to your local council, providing them with proof of the property’s vacancy and any other required documentation Once approved, you can benefit from a 100% exemption from business rates for a specified period, typically 3 to 6 months.
2 Consider Short-Term Leases
Another strategy to avoid paying business rates on empty property is to consider entering into short-term leases with temporary tenants By allowing another business or individual to occupy your property on a temporary basis, you can avoid the burden of paying business rates while still generating some income from the rental fees.
Short-term leases can be a win-win situation for both parties involved The temporary tenant gets a space to operate their business or store their goods, while you benefit from a reduction or exemption from business rates during the occupancy period Just be sure to clearly outline the terms of the lease agreement, including the duration of the tenancy and the rental fees.
3 Use the Small Business Rate Relief
If your vacant property is small in size, you may be eligible for Small Business Rate Relief This relief is designed to support small businesses by providing them with a discount on their business rates avoiding business rates on empty property. In some cases, properties with a rateable value below a certain threshold may be eligible for a 100% exemption from business rates.
To qualify for Small Business Rate Relief, your property must have a rateable value below the specified threshold set by the government You will need to apply directly to your local council for the relief, providing them with the necessary documentation to support your eligibility If approved, you can benefit from a significant reduction or exemption from business rates on your vacant property.
4 Explore Charitable Relief
If your vacant property is used for charitable purposes, you may be eligible for Charitable Relief on your business rates This relief is available to registered charities and can provide them with a discount or exemption from business rates on their properties.
To qualify for Charitable Relief, your property must be used for charitable purposes and be occupied by a registered charity You will need to provide proof of the property’s occupancy and the charitable activities taking place there to your local council If approved, you can benefit from a reduction or exemption from business rates on your vacant property.
5 Appeal Your Business Rates
If you believe that the business rates on your vacant property are too high or have been unfairly assessed, you have the right to appeal the rates with the Valuation Office Agency By appealing your business rates, you can have them reassessed based on the actual rental value of your property and potentially reduce the amount you owe.
When appealing your business rates, make sure to provide any relevant evidence to support your case, such as rental comparables or details of any improvements made to the property You can also seek the help of a professional surveyor or adviser to assist you with the appeals process and maximize your chances of success.
In conclusion, there are several strategies you can use to avoid paying business rates on empty property legally By applying for Empty Property Relief, considering short-term leases, using Small Business Rate Relief, exploring Charitable Relief, and appealing your business rates, you can minimize or eliminate the burden of business rates on your vacant property Remember to consult with your local council and seek professional advice to ensure that you are complying with the regulations and maximizing your savings on business rates.