Business rates can be a significant expense for property owners, especially when a property sits empty. Empty property rates can add up quickly, putting a strain on your finances. However, there are ways to avoid or mitigate these costs. In this article, we will discuss seven tips for avoiding business rates on empty property.
1. Apply for Charitable Status
One way to avoid paying business rates on empty property is to apply for charitable status. If you can demonstrate that your property is being used for charitable purposes, you may be eligible for relief on your business rates. This can be a good option if you are planning to use the property for charitable activities in the future, or if you are in the process of securing tenants.
2. Explore Exemptions and Reliefs
There are a number of exemptions and reliefs available for empty properties that can help reduce or eliminate your business rates bill. For example, some properties may be exempt from business rates for a certain period of time after they become vacant. It is important to research and understand the available exemptions and reliefs in your area to see if you qualify.
3. Temporary Occupation
One strategy for avoiding business rates on empty property is to temporarily occupy the space. By renting out the property on a short-term basis, even for a minimal amount, you can reset the clock on the empty property rates. This can buy you some time to find a more permanent solution for the property, such as securing long-term tenants.
4. Use the Property for Storage
If you are unable to find tenants for your property, consider using it for storage purposes. By renting out the space for storage, you can potentially qualify for relief on your business rates. Storage can be a lucrative option for empty properties, especially in areas where there is high demand for storage facilities.
5. Renovate or Develop the Property
Another way to avoid business rates on empty property is to renovate or develop the space. By making improvements to the property, you may be able to qualify for relief on your business rates. Additionally, renovating or developing the property can make it more attractive to potential tenants, helping you secure tenants more quickly and reducing the amount of time the property sits empty.
6. Negotiate with the Local Council
If you are struggling to pay your business rates on empty property, consider reaching out to the local council to see if you can negotiate a payment plan or reduced rates. Some councils may be willing to work with property owners who are facing financial difficulties, especially if they can demonstrate a commitment to finding a solution for the property.
7. Seek Professional Advice
Navigating the complexities of business rates can be challenging, especially when it comes to empty property rates. If you are unsure about how to avoid or mitigate business rates on your empty property, consider seeking professional advice. A property tax expert or a chartered surveyor can help you understand the options available to you and develop a strategy for minimizing your business rates bill.
In conclusion, avoiding business rates on empty property is possible with the right strategies in place. By exploring exemptions and reliefs, using the property for alternative purposes, and seeking professional advice, property owners can reduce the financial burden of empty property rates. With careful planning and proactive measures, you can navigate the challenges of business rates on empty property and protect your bottom line.