When it comes to owning commercial property, one of the challenges that many owners face is dealing with business rates on empty properties. These rates can often be a significant financial burden, especially for properties that are not currently generating any income. However, there are some strategies that property owners can employ to potentially avoid or reduce these rates. In this article, we will discuss some of the ways in which you can avoid business rates on empty property.
One of the first things to consider when trying to avoid business rates on an empty property is the length of time that the property has been vacant. In most cases, properties that have been empty for three months or less are not subject to business rates. This means that if you are able to find a tenant within this time frame, you may be able to avoid paying business rates altogether.
Another option to consider is applying for an exemption or relief from business rates. There are a number of circumstances in which property owners may be eligible for relief, such as if the property is undergoing major repairs or is classified as a listed building. It is important to check with your local council to see if you qualify for any exemptions or reliefs that could help reduce your business rates liability.
If you are unable to find a tenant or qualify for any exemptions or reliefs, there are still other options to consider for avoiding business rates on empty property. One option is to consider demolishing the property. In some cases, properties that are demolished are no longer subject to business rates, as long as the demolition is carried out in accordance with local planning regulations.
Alternatively, if demolishing the property is not a viable option, you could consider repurposing the property for a different use. For example, you could convert the property into residential units or a different type of commercial space. By doing so, you may be able to qualify for a change of use exemption, which could help reduce your business rates liability.
Another option to consider is applying for transitional relief. Transitional relief is a scheme that is designed to help property owners who have seen a significant increase in their business rates liability due to revaluations. By applying for transitional relief, you may be able to spread out any increases in your rates liability over a number of years, helping to reduce the financial impact on your business.
It is worth noting that avoiding business rates on empty property is not always a straightforward process, and there may be some legal and financial implications to consider. Therefore, it is important to seek professional advice from a chartered surveyor or other property expert before making any decisions.
In conclusion, there are several strategies that property owners can employ to avoid or reduce business rates on empty property. By considering options such as finding a tenant, applying for exemptions or reliefs, demolishing or repurposing the property, or applying for transitional relief, property owners may be able to mitigate the financial burden of business rates on empty properties. Ultimately, seeking professional advice and exploring all available options will be key to finding the best solution for your specific circumstances.
By taking proactive steps and exploring all available options, property owners can potentially avoid or reduce business rates on empty property, providing some relief in the face of this financial burden.