Business rates can be a significant financial burden for property owners, especially when a property is empty and not generating any income. However, there are strategies that can be employed to avoid or reduce business rates on empty property. In this article, we will explore some of the ways in which property owners can minimize their business rates liability and save money.
One of the most common ways to avoid business rates on empty property is to claim an exemption. In England, for example, properties that are unoccupied for a certain period of time may be eligible for a 100% exemption from business rates. This exemption typically lasts for three or six months, depending on the type of property. It is important to be aware of the specific rules and regulations governing business rates exemptions in your area, as they can vary from one jurisdiction to another.
Another strategy for avoiding business rates on empty property is to apply for a discretionary relief. Some local authorities have the discretion to grant relief on business rates for properties that are empty and undergoing renovation or redevelopment. Property owners can make a case for why they should be granted relief, such as demonstrating that the property is being actively marketed for sale or lease. It is worth speaking to your local council to see if you may be eligible for this kind of relief.
Furthermore, property owners can consider leasing their empty property to a charity or community group in order to claim an 80% discount on their business rates. This can be a win-win situation, as the property owner will benefit from reduced rates while the charity or community group will have access to much-needed space at a lower cost. It is important to ensure that the lease agreement is structured in a way that complies with the relevant regulations in order to qualify for the discount.
In some cases, property owners may be able to reduce their business rates liability by applying for transitional relief. This form of relief is designed to help businesses that are facing a significant increase in their rates bill as a result of a revaluation of the property. By applying for transitional relief, property owners can spread out the increase in their rates bill over a period of time, rather than having to pay the full amount all at once. It is worth checking with your local council to see if you may be eligible for transitional relief.
It is also worth exploring the option of appealing against your business rates assessment if you believe that it is inaccurate. Property owners have the right to challenge the rateable value assigned to their property by the Valuation Office Agency, and if successful, they may be able to secure a reduction in their rates bill. It is advisable to seek the assistance of a professional valuer or rating advisor when lodging an appeal, as they will have the expertise and experience to navigate the appeals process effectively.
Lastly, property owners can consider repurposing their empty property in order to generate income and avoid paying business rates. For example, an empty retail unit could be converted into residential accommodation or a coworking space, which would generate rental income and make the property eligible for small business rates relief. By being creative and flexible in their approach, property owners can maximize the potential of their empty property and avoid unnecessary costs.
In conclusion, there are several strategies that property owners can employ to avoid or reduce business rates on empty property. From claiming exemptions and relief to appealing against assessments and repurposing properties, there are ways in which property owners can minimize their rates liability and save money. By being proactive and seeking professional advice when needed, property owners can navigate the complex world of business rates and ensure that they are not paying more than they need to.