When it comes to owning and running a business, expenses can add up quickly. One of the costs that often catches business owners off guard is business rates on empty property. If you own a property that is not currently being used for business purposes, you may still be required to pay business rates on it. However, there are ways to legally avoid paying these rates. In this article, we will discuss some strategies for avoiding business rates on empty property.
1. Temporary occupation
One way to avoid paying business rates on empty property is to temporarily occupy the space. By having someone temporarily use the property for a short period of time, you can potentially avoid paying business rates. This could be done by renting out the space to a pop-up shop, hosting events, or even allowing another business to use the property on a short-term basis.
2. Claiming exemptions
There are certain exemptions and reliefs available that could help you avoid paying business rates on empty property. For example, if the property is listed as a heritage building, you may be eligible for relief. There are also exemptions available for properties that are undergoing major repairs or renovations. It is worth looking into these exemptions to see if you qualify for any relief from business rates.
3. Applying for rate relief
Local councils have the authority to grant rate relief for empty properties. This relief can vary depending on the council and the circumstances of the property. It is worth reaching out to your local council to see if you are eligible for any rate relief on your empty property. They may be able to offer financial assistance or reduced rates for a certain period of time.
4. Demolishing the property
If the property is no longer economically viable or is in poor condition, you may want to consider demolishing it. By demolishing the property, you can potentially avoid paying business rates on it. However, this option should only be considered as a last resort, as it can be costly and time-consuming.
5. Appealing the rateable value
If you believe that the rateable value of your property is inaccurate, you have the right to appeal it. By appealing the rateable value, you may be able to get it reduced, which could lower your business rates. It is important to provide evidence to support your appeal, such as recent valuations or comparisons to similar properties in the area.
6. Turning the property into a residential property
Another option for avoiding business rates on empty property is to convert it into a residential property. By converting the property into residential use, it may no longer be subject to business rates. However, it is important to check with your local council to see if there are any regulations or requirements for converting the property into a residential dwelling.
7. Keeping the property in use
One of the most effective ways to avoid business rates on empty property is to keep it in use. Whether this means using it for storage, renting it out, or using it as a temporary workspace, keeping the property occupied can help you avoid paying business rates. This not only helps you save money on business rates but also allows you to generate income from the property.
In conclusion, there are several strategies for avoiding business rates on empty property. By exploring options such as temporary occupation, claiming exemptions, applying for rate relief, demolishing the property, appealing the rateable value, converting the property into a residential property, and keeping the property in use, you may be able to reduce or eliminate your business rates. It is important to consult with a professional or your local council to determine the best course of action for your specific situation. By taking proactive steps to avoid paying business rates on empty property, you can save money and make the most of your property investment.