When it comes to owning commercial property, one of the biggest concerns for landlords and business owners is the cost of business rates These rates can add up significantly, especially when a property is sitting empty and not generating any income However, there are ways to avoid paying business rates on empty property, saving you money in the long run.
One of the first things to consider when trying to avoid business rates on empty property is the Small Business Rates Relief scheme This scheme allows certain businesses to apply for relief on their business rates, including a reduction in rates for empty properties If your property meets the criteria for the Small Business Rates Relief scheme, you could potentially save a significant amount of money on your business rates bill.
Another way to avoid paying business rates on empty property is to actively market the property for rent or sale By showing that you are actively trying to find a tenant or buyer for the property, you may be able to qualify for a three-month exemption from paying business rates This exemption can be extended for up to a total of six months if the property remains empty By continuously marketing the property, you can potentially avoid paying business rates for an extended period of time.
It is also important to keep in mind that certain types of properties are exempt from paying business rates altogether For example, properties with a rateable value of less than £2,600 are eligible for small business rates relief and do not have to pay business rates on empty property Additionally, properties used for certain purposes, such as agriculture or religious worship, may also be exempt from paying business rates on empty property avoiding business rates on empty property. It is important to check with your local council to see if your property falls under any of these exemptions.
If you are unable to qualify for any of the above exemptions, there are still ways to reduce the amount of business rates you have to pay on empty property One option is to apply for discretionary rate relief This relief is granted by your local council on a case-by-case basis and can help reduce the amount of business rates you owe To apply for discretionary rate relief, you will need to provide documentation showing why you believe your property should qualify for relief.
Another way to avoid paying business rates on empty property is to consider short-term rentals or pop-up shops By renting out your property on a temporary basis, even for a short period of time, you can avoid paying full business rates on the property Short-term rentals can also help generate some income while you are looking for a more permanent tenant, offsetting the cost of business rates on the empty property.
Finally, if you are struggling to find a tenant or buyer for your empty property, it may be worth considering other options such as converting the property for a different use or investing in renovations to make the property more attractive to potential tenants By actively trying to make the property more appealing, you may be able to find a tenant more quickly and avoid paying business rates on the empty property for an extended period of time.
In conclusion, there are several ways to avoid paying business rates on empty property From applying for small business rates relief to actively marketing the property and exploring exemptions, landlords and business owners have options to reduce the financial burden of business rates on empty property By taking advantage of these strategies, you can save money and make the most of your commercial property investment.