Empty properties can be a headache for property owners, especially when it comes to business rates. Business rates are a tax on non-residential properties, including shops, offices, warehouses, and factories. These rates can be a significant financial burden for property owners, particularly when the property is empty and not generating any income.
However, there are ways to avoid or reduce business rates on empty properties. By understanding the rules and regulations surrounding business rates, property owners can take steps to minimize their financial liability and make the most of their investment. Below are some strategies for avoiding business rates on empty property.
1. Temporary occupation
One way to avoid business rates on empty property is to temporarily occupy the space with a short-term tenant or pop-up shop. By doing so, the property is considered to be in use and may qualify for an exemption from business rates. This can be a good option for property owners who are unable to find a long-term tenant but still want to avoid paying business rates on an empty property.
2. Property development
Another way to avoid business rates on empty property is to carry out property development work. If the property is undergoing substantial refurbishment or renovation, it may be eligible for an exemption from business rates. Property owners should check with their local council to see if they qualify for this exemption and what steps they need to take to apply.
3. Charitable occupation
Properties that are occupied by a registered charity may be eligible for relief from business rates. If the property is being used by a charity for charitable purposes, the property owner may be able to claim a discount or exemption on their business rates. However, it is important to note that the charity must be registered and using the property for qualifying purposes in order to qualify for this relief.
4. Caretaker occupation
Some property owners may choose to appoint a caretaker to live on-site in order to avoid paying business rates on an empty property. By having a caretaker occupy the property, it is considered to be in use and may qualify for an exemption from business rates. However, property owners should be aware that this option may not be suitable for all types of properties and may not be a long-term solution.
5. Vacant property relief
In certain circumstances, property owners may be eligible for vacant property relief, which allows them to claim a discount on their business rates. This relief is available for certain types of properties, such as industrial properties or listed buildings, and can provide significant savings for property owners. Property owners should check with their local council to see if they qualify for vacant property relief and what steps they need to take to apply.
6. Appealing the rateable value
If property owners believe that the rateable value of their property is too high, they may be able to appeal to the Valuation Office Agency (VOA) to have it reassessed. By providing evidence of the property’s value and comparable properties in the area, property owners may be able to reduce their business rates liability. It is important to note that this process can be time-consuming and may require the help of a professional advisor.
In conclusion, there are several ways for property owners to avoid or reduce business rates on empty property. By exploring these options and understanding the rules and regulations surrounding business rates, property owners can make informed decisions about how to maximize their investment and minimize their financial liability. Whether it is through temporary occupation, property development, charitable occupation, caretaker occupation, vacant property relief, or appealing the rateable value, property owners have options when it comes to avoiding business rates on empty property. With the right strategy in place, property owners can make the most of their investment and avoid unnecessary financial burdens.