When it comes to owning commercial property, one of the biggest headaches for landlords is dealing with business rates on empty premises Business rates are essentially a tax on non-residential properties that are used for business purposes Unfortunately, even if your property is sitting empty, you may still be required to pay these rates, which can be a significant financial burden.
However, there are some strategies that landlords can employ to minimize or even completely avoid paying business rates on empty property In this article, we will explore some of these strategies and provide some tips on how you can keep your costs down.
1 Temporary occupation
One of the most effective ways to avoid paying business rates on an empty property is to allow for temporary occupation By leasing the property to a short-term tenant, even if just for a short period of time, you can qualify for exemption from business rates This can be a win-win situation as it provides you with some rental income while also avoiding the hefty rates that would otherwise be due.
2 Use as storage
Another way to avoid business rates on empty property is to use the space for storage purposes If you can demonstrate that the property is being used solely for storage and is not being used for any business activities, you may be able to claim an exemption from business rates This can be a good option if you have a lot of vacant space that is suitable for storage.
3 Develop the property
If you have the resources to do so, developing the property can be another way to avoid business rates on empty premises By carrying out renovations or improvements to the property, you may be able to qualify for temporary exemption from business rates This can also help increase the property’s value in the long run.
4 Seek a discount or exemption
In some cases, you may be eligible for a discount or exemption on your business rates if your property is empty avoiding business rates on empty property. For example, if your property is undergoing major repairs or structural changes, you may be able to claim a discount on your rates Additionally, certain types of properties, such as listed buildings or charity-owned properties, may be eligible for full exemption from business rates.
5 Challenge the rateable value
If you believe that the rateable value of your property is too high, you have the right to challenge it By lodging an appeal with the Valuation Office Agency, you may be able to get the rateable value reduced, which in turn would lower your business rates liability It’s important to gather evidence to support your case and be prepared to go through the appeals process.
6 Keep the property occupied
Of course, the best way to avoid paying business rates on empty property is to keep it occupied While this may seem obvious, it’s worth mentioning that finding tenants for your property should be a top priority Consider offering incentives to attract tenants, such as reduced rent or flexible lease terms Keeping your property occupied not only helps you avoid business rates but also generates rental income for you.
In conclusion, there are several strategies that landlords can use to avoid or minimize their business rates liability on empty property From temporary occupation to challenging the rateable value, there are options available to help you keep your costs down By exploring these strategies and staying proactive, you can effectively manage your business rates and make owning commercial property a more financially viable endeavor
So, whether you’re a landlord with vacant property or are considering investing in commercial real estate, keep these tips in mind to avoid business rates on empty property With a bit of planning and creativity, you can reduce your financial burden and make the most out of your investment.