Business rates can be a significant financial burden for property owners, especially when the property is sitting empty. However, there are ways to minimize or even completely avoid paying business rates on empty property. In this article, we will discuss some key tips for avoiding business rates on empty property.
1. Apply for Empty Property Relief
One of the most common ways to avoid paying business rates on empty property is to apply for Empty Property Relief. This relief is available for certain types of property, such as industrial properties and listed buildings. It can provide a period of relief from paying business rates, ranging from six months to indefinite relief, depending on the property’s classification.
To apply for Empty Property Relief, you will need to contact your local council and provide the necessary information about the property. It’s important to note that Empty Property Relief is not automatically applied, so you will need to make sure you submit the proper paperwork on time to avoid any unnecessary business rate charges.
2. Develop the Property
Another effective way to avoid paying business rates on empty property is to develop the property for alternative uses. By renovating or repurposing the property, you can change its classification and potentially qualify for a different type of relief or exemption from business rates. For example, converting a warehouse into residential apartments may qualify for residential property relief, which could significantly reduce or eliminate the business rates altogether.
Developing the property not only helps to avoid business rates but also increases its value and potential for generating rental income in the future. However, it’s important to consider the costs associated with developing the property and weigh them against the potential savings on business rates.
3. Use the Property for Storage
If you are unable to develop the property for alternative uses, another strategy to avoid paying business rates on empty property is to use it for storage purposes. Many local councils offer relief or exemptions for properties that are used solely for storage, as long as they are not used for retail or business activities. By utilizing the property for storage, you may qualify for storage relief, which can significantly reduce the business rates burden.
It’s important to note that the property must be used exclusively for storage purposes to qualify for this relief. Any other activities conducted on the property may disqualify you from receiving storage relief and result in additional business rate charges.
4. Consider Charitable Relief
If you are unable to utilize the property for storage or development purposes, you may want to explore charitable relief as a way to avoid paying business rates on empty property. Charitable relief is available for properties that are used by registered charities or for charitable purposes, providing a 80% discount on business rates.
By allowing a charity to use your empty property for their activities, you can qualify for charitable relief and significantly reduce the amount of business rates you are required to pay. This not only benefits the charity but also helps to minimize your financial burden while maintaining the property.
In conclusion, there are several effective strategies for avoiding business rates on empty property. By applying for Empty Property Relief, developing the property for alternative uses, using it for storage purposes, or considering charitable relief, property owners can minimize or potentially eliminate the financial burden of business rates. It’s important to explore all available options and choose the strategy that best fits your property and financial goals. By taking proactive steps to avoid business rates on empty property, property owners can save money and maximize the value of their assets.