When it comes to owning or managing empty property, one of the most important considerations is how to avoid paying business rates on it. Business rates are a tax levied on non-residential properties, including empty commercial buildings, and can add up to a significant expense for property owners. Here are some tips for avoiding business rates on empty property.
1. Find out if your property is exempt
One of the first things you should do when dealing with an empty property is to find out if it qualifies for any exemptions from business rates. Some properties are exempt from business rates for a certain period of time, such as newly built properties that are not yet occupied or properties that are undergoing major renovation. Check with your local council to see if your property is eligible for any exemptions.
2. Make sure your property is occupied for the minimum amount of time required
Another way to avoid paying business rates on empty property is to make sure it is occupied for the minimum amount of time required by law. In some cases, if a property is occupied for a short period of time, it may be considered “occupied” for the purposes of business rates and the owner may not be required to pay the tax. Check with your local council to find out what the minimum occupancy requirements are in your area.
3. Consider temporary uses for the property
If your property is going to be empty for an extended period of time, consider finding temporary uses for it that can help you avoid paying business rates. For example, you could rent out the property for short-term events or use it as a pop-up shop or gallery. By generating some income from the property, you may be able to claim relief from business rates.
4. Explore empty property relief schemes
Some local councils offer relief schemes for owners of empty properties that can help reduce or even eliminate the amount of business rates they have to pay. These schemes may include discounts on business rates for certain types of empty properties or incentives for bringing empty properties back into use. Contact your local council to see if they offer any empty property relief schemes that you may be eligible for.
5. Consider demolishing or renovating the property
If your property has been empty for a long time and it is not generating any income, you may want to consider demolishing or renovating it to avoid paying business rates. By demolishing the property, you may be able to claim relief from business rates until a new building is constructed on the site. Similarly, renovating the property to bring it back into use may also help you avoid paying business rates on it.
6. Keep the property secure and well-maintained
An empty property that is not properly maintained or secured can attract vandalism, squatting, and other problems that can cost you more money in the long run. By keeping the property secure and well-maintained, you can reduce the risk of these issues and potentially avoid paying business rates. Make sure to regularly check on the property, secure any entry points, and maintain the exterior to deter unwanted visitors.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By exploring exemptions, occupancy requirements, temporary uses, relief schemes, demolishing or renovating the property, and maintaining it properly, property owners can minimize the financial burden of business rates on their empty properties. Remember to consult with your local council and a professional advisor to determine the best approach for your specific situation. With careful planning and proactive management, you can effectively avoid business rates on empty property and maximize the value of your real estate investments.