Business rates can be a significant financial burden for property owners, especially when their properties are sitting empty. In the UK, owners of commercial properties are required to pay business rates on their premises, regardless of whether they are being used or not. This can create a real headache for owners who are struggling to find tenants or who have properties that are undergoing renovations. However, there are ways to legally avoid paying business rates on empty property. Here are five strategies to consider.
1. Use the Small Business Rates Relief Scheme
If your property has a rateable value below a certain threshold, you may be eligible for the Small Business Rates Relief (SBRR) scheme. Under this scheme, properties with a rateable value of £12,000 or less are exempt from paying business rates. Properties with a rateable value between £12,001 and £15,000 may also qualify for a reduced rate. By applying for SBRR, you can significantly reduce or eliminate the business rates on your empty property.
2. Apply for Empty Property Relief
In some cases, property owners may be able to apply for Empty Property Relief, which provides a 100% exemption from business rates for certain types of properties that have been vacant for a specified period of time. Different regions have varying criteria for this relief, so it is essential to check with your local council to see if your property qualifies. Keep in mind that Empty Property Relief is typically only available for a limited time, so it’s crucial to apply as soon as your property becomes empty.
3. Consider Charitable Relief
Another option to explore is Charitable Relief, which provides a 80% discount on business rates for properties that are occupied by charities or used for charitable purposes. If you are willing to let a charitable organization use your empty property, you could benefit from significant savings on your business rates. By making a property available to a registered charity, you can support a good cause while also avoiding the financial burden of business rates.
4. Use the Property Guardianship Scheme
Property guardianship is becoming an increasingly popular option for property owners looking to avoid paying business rates on empty buildings. Under this scheme, vacant properties are occupied by temporary guardians who act as live-in security. By placing property guardians in your empty building, you can demonstrate that the property is being actively used and maintained, which may exempt you from paying business rates. This scheme not only helps owners save money on business rates but also provides an added layer of security to prevent squatters and vandalism.
5. Consider Short-Term Leasing or Pop-Up Shops
If you are struggling to find a long-term tenant for your empty property, consider exploring short-term leasing options or setting up a pop-up shop. By temporarily leasing your property to businesses or individuals for special events, exhibitions, or short-term projects, you can generate income while avoiding business rates on the property. Pop-up shops have become a popular trend in recent years, offering a creative solution for property owners to showcase their space and attract potential long-term tenants. This strategy can help you generate revenue and maintain the property’s active status while waiting for a more permanent tenant.
In conclusion, paying business rates on empty property can be a significant financial burden for property owners. However, there are several strategies available to legally avoid or reduce these rates. By taking advantage of schemes such as Small Business Rates Relief, Empty Property Relief, Charitable Relief, Property Guardianship, and short-term leasing options, property owners can minimize their expenses and maximize their property’s potential. It’s essential to research and understand the eligibility criteria for each relief scheme and choose the option that best suits your circumstances. By implementing these strategies, property owners can navigate the challenges of business rates on empty property and find practical solutions to save money and protect their investments.
**avoiding business rates on empty property:** avoiding business rates on empty property