How To Save Money By Avoiding Business Rates On Empty Property

Business rates can be a significant expense for property owners, especially when a property sits empty. Many owners are unaware that there are ways to avoid paying business rates on empty buildings, saving them potentially thousands of pounds each year. In this article, we will explore some strategies for avoiding business rates on empty property and discuss the benefits of doing so.

One common strategy for avoiding business rates on empty property is to claim an exemption. In England, for example, most empty commercial properties are exempt from business rates for the first three months after they become empty. This exemption can provide property owners with a temporary reprieve from paying rates while they find a new tenant or make necessary repairs to the property.

Another exemption that property owners can take advantage of is the listed buildings exemption. If a property is listed as a building of historical or architectural interest, it may be exempt from business rates altogether. This exemption can provide significant savings for owners of listed properties, as business rates can often be a substantial expense for these types of buildings.

In addition to exemptions, property owners can also take advantage of the Government’s Business Rates Relief schemes. These schemes are designed to provide financial assistance to property owners who are struggling to pay their business rates, particularly during times of economic hardship or when properties are empty. By applying for relief under these schemes, property owners can significantly reduce or eliminate their business rates liability on empty buildings.

Another way to avoid paying business rates on empty property is through a process known as property guardianship. Property guardianship involves placing temporary occupants in an empty building to deter vandalism, squatting, and other security risks. By doing so, property owners can claim an exemption from business rates as the property is no longer considered to be empty. Property guardians can also help to maintain the property and keep it in good condition while it is empty, potentially attracting new tenants or buyers.

It is important to note that property guardianship arrangements must be made with a reputable company to ensure that all legal requirements are met. Property owners should thoroughly research and vet any potential property guardian companies before entering into an agreement to avoid any risks or liabilities.

Property owners can also consider leasing their empty property for temporary uses such as pop-up shops, events, or storage facilities. By doing so, property owners can generate income from their empty buildings while avoiding business rates. This can be a win-win situation for both property owners and temporary tenants, as it provides a cost-effective solution for using empty space and generating revenue.

Finally, property owners can also consider demolishing or repurposing their empty buildings to avoid paying business rates. By demolishing an empty building, property owners can effectively eliminate their business rates liability on the site. Repurposing a building for a different use can also help to reduce business rates, as the new use may be eligible for exemptions or lower rates than the previous use.

In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By taking advantage of exemptions, relief schemes, property guardianship, temporary leases, or demolition, property owners can save significant amounts of money on business rates each year. It is important for property owners to explore these options and choose the strategy that best suits their individual circumstances to maximize savings and minimize expenses. By avoiding business rates on empty property, property owners can reduce their financial burden and make the most of their investment in commercial real estate.