When it comes to owning or leasing commercial property, one of the biggest expenses that businesses face is paying business rates These rates are charged by local authorities and are calculated based on the rateable value of the property However, there are some strategies that businesses can use to avoid or reduce their business rates on empty property In this article, we will discuss seven strategies that can help businesses save money on business rates for empty properties.
1 Temporary occupation
One way to avoid paying business rates on empty property is to temporarily occupy the space for a short period of time This could be done by renting out the space to a temporary tenant, using it for advertising purposes, or hosting events on the property By temporarily occupying the property, businesses can qualify for relief on their business rates under the ‘Small Business Rate Relief’ scheme.
2 Apply for exemptions
Businesses that are struggling to find tenants for their empty property may be able to apply for exemptions from paying business rates There are certain exemptions available for properties that are undergoing major repairs or renovations, properties that are owned by charities, and properties that have been empty for a certain period of time Businesses should check with their local authority to see if they qualify for any exemptions.
3 Use the property for storage
Another way to avoid paying business rates on empty property is to use the property for storage purposes Businesses can rent out the space to other businesses or individuals for storage, which can generate some income and help offset the cost of the business rates This strategy can be especially useful for businesses that own large properties with lots of empty space.
4 Make the property available for community use
Businesses can also avoid paying business rates on empty property by making the property available for community use avoiding business rates on empty property. This could involve allowing community groups to use the space for meetings or events, or offering the space for rent at a reduced rate to local organizations By using the property for community purposes, businesses may qualify for relief on their business rates under the ‘Community Amateur Sports Clubs (CASC)’ scheme.
5 Challenge the rateable value
Businesses that believe the rateable value of their property is too high can challenge the valuation with their local authority If successful, this could result in a reduction in the amount of business rates that the business is required to pay Businesses should gather evidence to support their case, such as rental comparables and evidence of any structural issues with the property.
6 Negotiate with the local authority
In some cases, businesses may be able to negotiate with their local authority to come to a mutual agreement on business rates for empty property This could involve offering to make improvements to the property in exchange for a reduction in rates, or proposing a payment plan that is more manageable for the business Businesses should be prepared to negotiate and present a strong case for why they deserve a reduction in rates.
7 Consider alternative uses for the property
Finally, businesses that are struggling to find tenants for their empty property may want to consider alternative uses for the space This could involve converting the property into residential units, changing the layout to accommodate multiple tenants, or repurposing the property for a different type of business By exploring alternative uses for the property, businesses may be able to generate income and avoid paying business rates on the empty space.
In conclusion, there are several strategies that businesses can use to avoid paying business rates on empty property By considering temporary occupation, applying for exemptions, using the property for storage, making the property available for community use, challenging the rateable value, negotiating with the local authority, and exploring alternative uses for the property, businesses can save money and reduce their financial burden It is important for businesses to explore all of their options and work with their local authority to find the best solution for their specific situation.