Business rates can be a significant financial burden for property owners, especially when a property is sitting empty While it is a legal requirement to pay business rates on empty commercial properties, there are certain strategies property owners can employ to legally avoid or reduce the amount they have to pay In this article, we will discuss some of the most effective ways to avoid business rates on empty property.
One of the most common methods used to avoid business rates on empty property is known as property guardian schemes These schemes involve temporarily placing individuals or companies in the empty property to act as live-in security guards By having people living in the property, it is no longer considered vacant, which means that business rates do not have to be paid Property guardian schemes are often cost-effective and can provide property owners with peace of mind knowing that their property is being looked after.
Another effective way to avoid business rates on empty property is to temporarily lease the property to a charitable organization Charitable organizations are exempt from paying business rates on empty properties, so by leasing the property to a charity, property owners can avoid paying rates while also supporting a worthy cause This arrangement can be mutually beneficial, as charities are often in need of affordable office or storage space.
Some property owners choose to demolish or substantially alter their empty properties to avoid business rates By obtaining planning permission for redevelopment or alterations, property owners can take advantage of the six-month exemption period during which business rates are not payable avoiding business rates on empty property. This strategy can be risky and costly, as it requires significant investment upfront, but it can ultimately save property owners money in the long run.
Property owners can also apply for a temporary exemption from paying business rates on empty properties if they can demonstrate that they are actively seeking tenants or buyers for the property This exemption period usually lasts for three or six months, during which time property owners do not have to pay business rates To qualify for this exemption, property owners must provide evidence of their efforts to market the property and demonstrate that they are making a genuine effort to fill the space.
Finally, property owners can consider appealing the rateable value of their empty property to reduce the amount of business rates they have to pay If property owners believe that the rateable value of their property is too high, they can submit a formal appeal to the Valuation Office Agency (VOA) to have the rateable value reassessed If successful, property owners can save a significant amount of money on their business rates It is important to note that property owners should seek professional advice before pursuing this option, as the appeals process can be complex and time-consuming.
In conclusion, there are several strategies property owners can employ to avoid or reduce business rates on empty property From property guardian schemes to temporary leasing arrangements, there are various options available depending on the individual circumstances of the property owner By exploring these options and seeking professional advice when necessary, property owners can successfully navigate the complexities of business rates and save money on their empty properties.