How To Avoid Business Rates On Empty Property

Empty properties can be a burden for many businesses, especially when they come with the additional cost of business rates. These rates are charged on most non-domestic properties, including warehouses, offices, and shops, whether they are being used or not. However, there are ways in which businesses can avoid paying business rates on empty property.

One of the first steps a business can take to avoid business rates on empty property is to consider whether the property is eligible for any exemptions or reliefs. Certain types of properties may be exempt from business rates for a specified period, such as newly built properties that have yet to be occupied. Additionally, properties that are used for charitable purposes or for the public good may also be eligible for relief from business rates.

Another option for businesses looking to avoid business rates on empty property is to actively market the property for rent or sale. By demonstrating that efforts are being made to find a tenant or buyer for the property, businesses may be able to apply for an exemption from business rates for a specified period. It is important to keep records of all marketing efforts, such as listing the property on relevant websites and working with a real estate agent, to support any exemption applications.

Businesses may also consider taking advantage of the government’s Empty Property Relief scheme, which allows properties that have been empty for a certain period to qualify for a discount on business rates. For example, properties that have been empty for more than three months may be eligible for a 100% exemption from business rates for the next three months. This can provide businesses with some relief from the financial burden of empty property.

In some cases, businesses may also be able to apply for a temporary exemption from business rates if the property is undergoing repairs or structural alterations. This can provide businesses with some breathing room while the property is being renovated and made ready for occupation. However, it is important to keep detailed records of the work being carried out and to provide evidence to support any exemption applications.

Another strategy for avoiding business rates on empty property is to consider leasing the property on a short-term basis to avoid being charged business rates. By entering into a short-term lease agreement with a tenant, businesses may be able to avoid the cost of business rates while still generating some income from the property. It is important to ensure that the lease agreement is structured in a way that complies with all relevant regulations and that any income generated is properly accounted for.

Businesses may also explore the option of applying for discretionary relief from business rates if they are facing financial difficulties as a result of empty property. Local authorities have the discretion to grant relief from business rates in cases where businesses are struggling to meet their financial obligations. Businesses may need to provide evidence of their financial situation and demonstrate that they are taking steps to address the issue of empty property.

In conclusion, there are several strategies that businesses can employ to avoid business rates on empty property. By exploring exemptions, reliefs, and relief schemes, actively marketing the property, and considering short-term leasing options, businesses can minimize the financial burden of empty property. It is important for businesses to keep detailed records of their efforts to avoid business rates and to be proactive in seeking relief from local authorities. With careful planning and strategic decision-making, businesses can navigate the complexities of business rates on empty property and mitigate their financial impact.