Business rates are a necessary expense for many commercial property owners, but it can be a burden for those who own vacant properties. Empty property business rates can add up quickly and eat into profits, making it important for property owners to explore strategies for avoiding or minimizing these costs. In this article, we will discuss various ways in which property owners can reduce their liability for business rates on empty properties.
One common 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, property owners may be able to qualify for a three-month exemption from business rates. This exemption can be extended to six months if the property remains empty but continues to be actively marketed.
Another option for reducing business rates on empty property is to consider applying for a temporary property guardianship scheme. Under this scheme, property owners can allow individuals to live in the property rent-free in exchange for providing security and maintaining the property. By having occupants in the property, owners may be able to qualify for a 100% exemption from business rates.
Property owners can also explore the option of converting their empty property into a different type of use that may qualify for a lower rate of business rates. For example, converting a vacant retail space into a storage facility may result in a lower rate of business rates, as storage facilities are typically charged at a lower rate than retail spaces.
Additionally, property owners should regularly check to ensure that they are not being charged for business rates on properties that are exempt. Certain types of properties, such as agricultural land or properties with a rateable value below a certain threshold, may be exempt from business rates altogether. By staying informed about the regulations and exemptions in place, property owners can ensure that they are not overpaying on business rates for their empty properties.
Collaborating with a professional property management company can also help property owners navigate the complexities of business rates on empty properties. Property management companies have expertise in handling business rates assessments and appeals, and can provide valuable guidance on the most effective strategies for reducing business rates liabilities. By enlisting the help of professionals, property owners can ensure that they are taking advantage of all available options for minimizing their business rates costs.
It is also worth noting that the government has introduced certain measures to support property owners during times of economic uncertainty, such as the COVID-19 pandemic. For example, the government introduced a 100% relief scheme for retail, leisure, and hospitality businesses in England for the 2020-2021 tax year. Property owners who qualify for this relief can benefit from a complete exemption from business rates on their eligible properties.
In conclusion, property owners have various strategies at their disposal for avoiding or minimizing business rates on empty properties. By actively marketing the property, exploring temporary property guardianship schemes, considering alternative uses, staying informed about exemptions, collaborating with property management companies, and taking advantage of government support schemes, property owners can effectively reduce their liability for business rates. It is important for property owners to proactively manage their business rates costs to protect their profits and ensure the financial health of their properties. By implementing these strategies, property owners can navigate the challenges of empty property business rates and optimize their financial outcomes.