When it comes to owning commercial property, one major concern for many business owners is the hefty business rates that come with it. Business rates are a tax levied on non-residential properties, including shops, offices, warehouses, and other commercial properties. However, there are ways to avoid paying business rates on empty properties, saving money for the property owner. In this article, we will explore some strategies to help property owners avoid paying business rates on their empty properties.
One common strategy to avoid business rates on empty property is known as the “empty property relief.” This relief allows property owners to claim a 100% exemption on their business rates for a specified period of time if their property is empty. The time frame for which this relief applies varies depending on the location of the property, with some areas offering relief for up to three months, while others may provide relief for up to six months or even longer.
Property owners should check with their local council to find out the specific rules and regulations regarding empty property relief in their area. In some cases, property owners may need to submit a formal application to the council in order to claim this relief. It is important to keep in mind that once the specified period of empty property relief expires, business rates will be due once again unless another exemption is applied for and granted.
Another strategy for avoiding business rates on empty property is to actively market the property for rent or sale. By demonstrating that efforts are being made to find a tenant or buyer for the property, property owners may be able to claim a temporary relief from business rates. This strategy is known as the “empty property relief 50%,” which allows property owners to claim a 50% discount on their business rates for a specified period of time while the property is actively being marketed.
In order to qualify for the empty property relief 50%, property owners must provide evidence to the council that the property is actively being marketed for rent or sale. This could include listing the property on commercial real estate websites, working with a real estate agent, or advertising the property in local newspapers or magazines. Property owners should keep detailed records of their marketing efforts in case they need to provide proof to the council.
Property owners should also consider making use of temporary occupation agreements to avoid paying business rates on empty property. A temporary occupation agreement allows a third party to occupy the property temporarily, relieving the property owner of the burden of paying business rates. This could include allowing a charity to use the property for a short-term event or exhibition, or renting out the property on a short-term basis to a pop-up shop or restaurant.
Temporary occupation agreements can be a win-win situation for both parties involved. The property owner avoids paying business rates on the empty property, while the temporary occupier gains access to a well-located commercial space at a reduced cost. Property owners should make sure to draw up a formal agreement outlining the terms and conditions of the temporary occupation to protect both parties’ interests.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By taking advantage of empty property relief, actively marketing the property for rent or sale, and making use of temporary occupation agreements, property owners can save money and avoid the financial burden of business rates on their unoccupied properties. It is important for property owners to familiarize themselves with the rules and regulations regarding business rates in their area and to consult with their local council for guidance on how to best navigate the process of avoiding business rates on empty property. By implementing these strategies, property owners can make the most of their commercial properties while minimizing their expenses and maximizing their profits.