When it comes to owning vacant commercial property, one of the biggest headaches for property owners is having to pay business rates on empty buildings. These rates can be a significant financial burden, especially if the property remains vacant for an extended period of time. However, there are ways in which property owners can legally avoid paying business rates on empty property. In this article, we will explore some strategies that property owners can use to minimize or eliminate their business rates liabilities.
One of the most common ways to avoid paying business rates on empty property is to secure relief or exemptions. There are a number of situations in which property owners may be eligible for relief from business rates, including:
1. Small business rates relief: If the property is used for certain small business purposes, such as a small workshop or office, property owners may be eligible for small business rates relief, which can significantly reduce or even eliminate their business rates liabilities.
2. Charitable relief: Properties that are used for charitable purposes, such as a charity shop or community center, may be eligible for charitable relief from business rates. Property owners should consult with their local authority to determine their eligibility for this relief.
3. Empty property relief: In some cases, property owners may be eligible for empty property relief, which provides a temporary exemption from business rates for certain types of empty properties. Property owners should be aware that there are specific conditions that must be met in order to qualify for this relief, so it is important to carefully review the eligibility criteria.
Property owners should also be aware of the various exemptions that are available for certain types of properties. For example, listed buildings and properties that are undergoing major structural repairs may be exempt from business rates for a certain period of time. Property owners should consult with their local authority to determine if their property qualifies for any exemptions.
Another important strategy for avoiding 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, property owners may be able to secure a temporary exemption from business rates. Property owners should keep records of their marketing efforts, including any advertisements, viewings, and negotiations with potential tenants or buyers, in order to provide evidence to their local authority.
Property owners should also consider ways to reduce their business rates liabilities by exploring alternative uses for the property. For example, converting an empty office building into residential apartments may qualify for a change of use exemption from business rates. Similarly, property owners could consider temporary uses for the property, such as hosting events or pop-up shops, in order to generate income and reduce their business rates liabilities.
It is important for property owners to be aware of their rights and responsibilities when it comes to business rates on empty property. Property owners should regularly review their business rates assessments to ensure that they are accurate and up-to-date. If property owners believe that their business rates assessment is incorrect, they have the right to appeal to the Valuation Office Agency.
In conclusion, avoiding business rates on empty property can be a challenging task for property owners, but with the right strategies and planning, it is possible to minimize or eliminate this financial burden. By exploring relief and exemptions, actively marketing the property, considering alternative uses, and being aware of their rights and responsibilities, property owners can take steps to reduce their business rates liabilities and protect their investment in vacant commercial property.