How To Avoid Business Rates On Empty Property

Business rates are a significant expense that can eat into the profits of any company. When a property is left empty, business owners are often stuck paying these rates even though no revenue is being generated from the property. However, there are ways to legally avoid paying business rates on empty property. This article will explore some of the options available to business owners to minimize this financial burden and protect their bottom line.

One of the most common ways to avoid business rates on empty property is by taking advantage of the exemptions and reliefs offered by the government. In England, for example, commercial properties with a rateable value of less than £2,600 are exempt from business rates altogether. Additionally, properties that are used for charitable purposes or are undergoing renovation may also be eligible for relief from business rates. By checking with the local council and understanding the various exemptions available, business owners can significantly reduce their rate liabilities on empty property.

Another option for avoiding business rates on empty property is by actively using the property for certain purposes that can qualify for relief. For example, if the property is being used for storage or industrial purposes, it may be eligible for relief from business rates. Similarly, if the property is being used by a community group or for charitable purposes, it may also qualify for relief. By finding creative ways to use the property while it is empty, business owners can minimize their rate liabilities and potentially generate some revenue in the process.

Business owners can also consider entering into a “temporary occupation arrangement” with a charity or community group in order to avoid paying business rates on empty property. By allowing a qualifying organization to use the property temporarily, business owners can benefit from relief on the property for as long as it is occupied. This arrangement not only helps business owners avoid paying business rates on empty property but also allows them to support a worthy cause in the process.

In some cases, business owners may opt to demolish or redevelop the empty property in order to avoid paying business rates. Properties that are undergoing substantial renovation or redevelopment are often eligible for relief from business rates for a certain period of time. By investing in the property and improving its value, business owners can benefit from relief on their rate liabilities and potentially increase the property’s future rental or sale value.

Another option for avoiding business rates on empty property is by seeking to have the property revalued by the Valuation Office Agency (VOA). If business owners believe that the rateable value of the property is inaccurate or disproportionate, they can request a reassessment from the VOA. By providing evidence of factors such as changes in the local market, property condition, or rental values, business owners may be able to secure a lower rateable value and reduce their business rates liability.

In conclusion, there are several options available to business owners for avoiding business rates on empty property. By exploring exemptions and reliefs, utilizing the property for qualifying purposes, entering into temporary occupation arrangements, demolishing or redeveloping the property, and seeking a reassessment from the VOA, business owners can significantly reduce their rate liabilities and protect their bottom line. With careful planning and proactive management, business owners can navigate the complexities of business rates on empty property and minimize the financial burden on their company.