When it comes to running a business, one of the most significant expenses that business owners face is business rates. These rates are a tax on the use of non-residential property, and they can often take up a large portion of a company’s budget. However, there are ways that business owners can legally avoid paying business rates on empty properties. In this article, we will discuss five strategies that can help business owners reduce or eliminate their business rates on empty property.
1. Temporary Use Exemption
One of the most common ways to avoid paying business rates on empty property is to obtain a temporary use exemption. This exemption allows business owners to avoid paying business rates on their property for a set period, typically three months. To qualify for this exemption, the property must be unoccupied and not used for any business purposes during this time. This exemption can provide business owners with some much-needed relief while they search for a new tenant or decide the future use of the property.
2. Empty Property Relief
Another strategy for avoiding business rates on empty property is to apply for empty property relief. This relief allows business owners to receive a 100% discount on their business rates for properties that have been empty for a certain amount of time. The length of time required to qualify for this relief varies depending on the location of the property, but it is typically around three to six months. This can be a significant cost-saving measure for business owners who are struggling to find tenants for their empty properties.
3. Property Guardians
Property guardians can be a useful tool for business owners looking to avoid paying business rates on empty property. Property guardians are individuals who live in and take care of empty properties in exchange for reduced rent. By employing property guardians, business owners can ensure that their property is being looked after and prevent squatters from taking up residence. This can also help business owners avoid paying business rates on their empty property, as the property is considered to be in use and therefore exempt from these taxes.
4. Repurposing the Property
Another effective strategy for avoiding business rates on empty property is to repurpose the property for a different use. By changing the purpose of the property, business owners may be able to qualify for a change of use exemption, which can reduce or eliminate their business rates. For example, converting an office building into residential apartments could result in a lower business rate bill. Business owners should consult with their local council to determine if their proposed change of use qualifies for a rate reduction.
5. Appeal or Challenge the Rateable Value
Finally, business owners who believe that the rateable value of their property is inaccurate can challenge it with the Valuation Office Agency. By appealing the rateable value, business owners may be able to reduce their business rates and save money. However, it is essential to provide evidence to support the claim that the rateable value is incorrect. This could include documents such as rent agreements, valuation reports, or evidence of property damage. Business owners should be prepared to present a strong case to the Valuation Office Agency to have a successful appeal.
In conclusion, there are several strategies that business owners can employ to avoid paying business rates on empty property. By utilizing temporary use exemptions, empty property relief, property guardians, repurposing the property, or challenging the rateable value, business owners can significantly reduce their business rate bills and save money. It is crucial for business owners to stay informed about the options available to them and to work with their local council and the Valuation Office Agency to ensure that they are not paying more than they need to on their empty property. By taking advantage of these strategies, business owners can better manage their finances and focus on growing their businesses.