When it comes to owning commercial property, one of the biggest challenges for business owners is dealing with business rates on empty properties. These rates can be a significant financial burden, especially during times of economic uncertainty or when a property is vacant for an extended period. However, there are several strategies that business owners can employ to avoid or minimize business rates on empty properties. In this article, we will explore seven ways to reduce or eliminate business rates on empty property.
1. Empty Property Relief
One of the most common ways to avoid business rates on empty property is by applying for Empty Property Relief. This relief is available to property owners who have a commercial property that has been empty for a certain period. In most cases, property owners can apply for a 100% exemption from business rates for the first three months the property is empty, followed by a 50% discount for the next three months. After this initial period, the property owner will be required to pay the full business rates unless they qualify for another form of relief.
2. Charitable Relief
If you own a commercial property that is empty and you are a registered charity, you may be entitled to Charitable Relief on business rates. This relief provides a 80% discount on business rates for properties that are used for charitable purposes. To qualify for this relief, the property must be wholly or mainly used for charitable purposes and be unoccupied for a limited period. This can be a great way for charities to save money on business rates while still utilizing their property for a worthy cause.
3. Enterprise Zone Relief
Another option for avoiding business rates on empty property is to locate your property within an Enterprise Zone. These zones are designated areas where businesses receive a range of incentives to support economic growth and development. One of these incentives is Enterprise Zone Relief, which provides a 100% exemption from business rates for new buildings that are unoccupied for a set period. By locating your property within an Enterprise Zone, you can take advantage of this relief and avoid paying business rates on empty property.
4. Small Business Rate Relief
If you own a small business and have a property that is empty, you may be eligible for Small Business Rate Relief. This relief is available to businesses with a rateable value of less than a certain threshold and provides a discount on business rates. If your property is empty, you may still be able to qualify for this relief and reduce the amount you owe in business rates. It’s worth checking with your local council to see if you qualify for this relief and to find out how much you could save.
5. Renovation Relief
If you are planning to renovate your empty property, you may be eligible for Renovation Relief on business rates. This relief provides a discount on business rates for properties that are undergoing renovation work. To qualify, the property must be unoccupied and undergoing structural repairs or alterations that will bring it back into use. By applying for Renovation Relief, you can reduce the amount you owe in business rates while improving your property for future use.
6. Transitional Relief
Transitional Relief is another option for property owners looking to avoid business rates on empty property. This relief is available to businesses that are facing a significant increase in their business rates due to a revaluation of their property. If your property is empty and your business rates have increased substantially, you may be eligible for Transitional Relief to help ease the financial burden. By applying for this relief, you can reduce the impact of higher business rates on your empty property.
7. Negotiate with the Local Council
Lastly, if you are struggling to pay business rates on your empty property, don’t be afraid to negotiate with your local council. Councils have the discretion to offer payment plans or discounts to property owners who are experiencing financial difficulties. By explaining your situation and providing evidence of your circumstances, you may be able to secure a reduction in the amount you owe in business rates. It’s always worth discussing your options with the council to see if they can offer any assistance in managing your business rates on empty property.
In conclusion, avoiding business rates on empty property is a challenge faced by many business owners. However, by exploring the various relief options available and taking proactive steps to minimize your liabilities, you can reduce the financial burden associated with empty properties. Whether you qualify for Empty Property Relief, Charitable Relief, or another form of relief, it’s important to explore all avenues to ensure you are not paying more than necessary in business rates. By being proactive and seeking out opportunities for relief, you can effectively manage your business rates on empty property and save money in the long run.