When it comes to owning property for business purposes, one of the most dreaded expenses that business owners face is business rates These rates are a tax on non-domestic properties, including retail shops, offices, and warehouses However, one of the biggest challenges for business owners is dealing with business rates on empty properties Empty properties are subject to the same rates as occupied properties, which can be a significant financial burden for business owners.
Fortunately, there are some strategies that business owners can use to avoid or reduce business rates on empty property In this article, we will discuss some of the methods that businesses can employ to minimize the impact of business rates on their empty properties.
1 Temporary Exemptions
One of the most common ways that business owners can avoid paying business rates on empty property is by taking advantage of temporary exemptions In some cases, empty properties may be exempt from business rates for a certain period of time For example, newly built properties are often granted a three-month exemption from business rates Additionally, properties that are being renovated or are undergoing structural changes may also be eligible for temporary exemptions.
It is important for business owners to be aware of the specific rules and regulations in their area regarding temporary exemptions for empty properties By taking advantage of these exemptions, business owners can significantly reduce their business rates expenses on empty properties.
2 Utilize Relief Schemes
In addition to temporary exemptions, there are various relief schemes available that can help business owners reduce their business rates on empty properties For example, the government offers relief schemes for properties that are considered to be of historical or architectural interest These properties may be eligible for relief on their business rates, making it more affordable for business owners to maintain and preserve these properties.
Furthermore, there are relief schemes available for properties that are used for charitable purposes or are owned by charities avoiding business rates on empty property. By utilizing these relief schemes, business owners can lower their business rates expenses on empty properties while also supporting charitable causes.
3 Appeal Your Rateable Value
Another strategy that business owners can use to avoid paying high business rates on empty properties is to appeal their rateable value The rateable value is used to calculate the amount of business rates that a property owner must pay If a property owner believes that their rateable value is too high, they can appeal to have it reassessed.
By appealing the rateable value of their property, business owners can potentially reduce their business rates expenses It is important for property owners to provide evidence to support their appeal and to be prepared to negotiate with the local authority to reach a fair and reasonable rateable value.
4 Consider Demolition or Redevelopment
If a property is consistently vacant and is costing the business owner significant amounts in business rates, it may be worth considering demolition or redevelopment By demolishing the existing property or redeveloping it into a new structure, business owners can avoid paying business rates on the empty property altogether.
Before undertaking demolition or redevelopment, business owners should carefully consider the costs and benefits involved It is important to weigh the potential savings in business rates against the expenses of redevelopment or demolition Additionally, business owners should be aware of any regulations or restrictions in their area regarding demolition or redevelopment.
In conclusion, business rates on empty property can be a major financial burden for business owners However, by taking advantage of temporary exemptions, utilizing relief schemes, appealing rateable values, or considering demolition or redevelopment, business owners can minimize the impact of business rates on their empty properties By being proactive and strategic in their approach, business owners can save money and avoid unnecessary expenses on their empty properties.