When it comes to owning and managing commercial property, one of the biggest headaches for landlords is paying business rates on empty buildings Business rates can quickly add up and become a significant expense, especially if a property remains vacant for an extended period of time However, there are some strategies that landlords can employ to minimize or even completely avoid business rates on empty property.
One of the simplest ways to avoid business rates on empty property is to ensure that the building is no longer considered “occupied” in the eyes of the local authorities This can be achieved by taking some proactive measures to make the building uninhabitable or unsuitable for occupation For example, landlords can disconnect utilities such as water, gas, and electricity, board up windows and doors, and remove any fixtures or fittings that may make the building attractive to potential tenants By making the building uninhabitable, landlords can argue that it is not fit for occupation and therefore should not be subject to business rates.
Another strategy that landlords can use to avoid business rates on empty property is to apply for an exemption or relief In some cases, certain types of properties may be eligible for relief from business rates if they meet specific criteria For example, properties that are undergoing major renovation or redevelopment works may qualify for an exemption from business rates for a certain period of time Landlords should check with their local authorities to see if their property qualifies for any exemptions or relief schemes.
Additionally, landlords can consider leasing the empty property to a charity or community organization Properties that are occupied by registered charities or not-for-profit organizations are usually exempt from business rates By leasing the property to a charity, landlords can not only avoid paying business rates but also contribute to a good cause However, it is important to note that the charity must be using the property for their charitable purposes in order to qualify for the exemption.
Furthermore, landlords can explore the option of applying for a temporary occupation license for the empty property avoiding business rates on empty property. Temporary occupation licenses allow individuals or businesses to occupy a property for a short period of time without being liable for business rates This can be a great option for landlords who are actively looking for new tenants but want to avoid paying business rates in the meantime By allowing a temporary occupant to use the property, landlords can keep the building occupied and potentially attract new tenants while saving money on business rates.
In some cases, landlords may also be able to claim empty property relief if their property falls under certain categories For example, properties that are classified as industrial warehouses, listed buildings, or properties with a rateable value below a certain threshold may be eligible for empty property relief Landlords should consult with a professional advisor or local authorities to determine if their property qualifies for this type of relief.
Finally, landlords can consider appealing their business rates assessment if they believe that it is incorrect or unfair Local authorities determine business rates based on the rateable value of a property, which is assessed every few years If landlords believe that the rateable value of their property is inaccurate or that they are being unfairly charged business rates, they can request a reassessment or appeal the decision By providing evidence to support their case, landlords may be able to reduce or eliminate their business rates liability.
In conclusion, paying business rates on empty property can be a significant financial burden for landlords However, there are several strategies that landlords can use to minimize or avoid paying business rates altogether By making the property uninhabitable, applying for exemptions or reliefs, leasing to charities, obtaining temporary occupation licenses, claiming empty property relief, or appealing their assessment, landlords can effectively reduce their business rates liability and save money in the long run.