Empty property can be a significant burden for business owners, especially when it comes to paying business rates on those vacant spaces. However, there are ways to potentially avoid or reduce these costs. In this article, we will explore some strategies for avoiding business rates on empty property.
One of the first things to consider when trying to avoid business rates on empty property is the Small Business Rate Relief scheme. This scheme allows eligible businesses with a rateable value below a certain threshold to receive relief on their business rates. In some cases, this relief could be as much as 100% of the rates due on a property. By applying for Small Business Rate Relief, you may be able to significantly reduce the financial burden of empty property.
Another option for avoiding business rates on empty property is to apply for Empty Property Relief. This relief is available to property owners who have a property that has been empty for a certain period of time. In England, for example, properties that have been empty for more than three months may be eligible for 100% relief on their business rates for the first three months, followed by a 50% discount for the next three months. By applying for Empty Property Relief, you can reduce the financial impact of having an empty property.
It’s also worth considering the Government’s recent changes to business rates on empty property. In April 2020, the Government announced that all retail, leisure, and hospitality properties in England will receive a 100% discount on business rates for the 2020-2021 tax year in response to the COVID-19 pandemic. This temporary relief means that if your empty property falls into one of these categories, you may not have to pay any business rates at all for this tax year.
In addition to these relief schemes, there are other strategies that business owners can use to avoid business rates on empty property. For example, you may consider temporarily repurposing the empty property for a non-business use. By turning the vacant space into something like a community hub, pop-up shop, or artist’s studio, you may be able to qualify for an exemption from business rates. This exemption, known as the “Discretionary Rate Relief,” allows local councils to grant relief to certain properties that are being used for specific purposes, even if they would otherwise be liable for business rates.
Furthermore, if you are unable to find a temporary use for your empty property, you may want to consider demolishing or renovating the building to avoid business rates altogether. Empty properties that are undergoing substantial renovation or are in the process of being demolished may be eligible for exemption from business rates. However, it’s important to note that you will need to inform your local council and provide evidence of the renovation or demolition work in order to qualify for this exemption.
Finally, if you are still struggling to avoid business rates on your empty property, it may be worth seeking professional advice. There are consultants and surveyors who specialize in business rates and may be able to help you find additional relief options or negotiate with your local council on your behalf. While hiring a professional may come with a cost, the potential savings in business rates could outweigh this expense in the long run.
In conclusion, empty property can be a financial burden for business owners, especially when it comes to paying business rates. However, there are several strategies that can help you avoid or reduce these costs, such as applying for relief schemes, repurposing the property, or seeking professional advice. By exploring these options and taking proactive steps, you may be able to minimize the impact of business rates on your empty property and potentially save your business money in the long term.