When it comes to owning commercial property, one of the biggest expenses that landlords face is business rates These rates can be a significant burden, especially when a property is sitting empty and not generating any income However, there are ways to minimize the impact of business rates on empty property In this article, we will explore some strategies that landlords can use to avoid or reduce business rates on empty property.
First and foremost, it’s important to understand the rules and regulations surrounding business rates on empty property In the UK, for example, commercial properties are subject to business rates whether they are occupied or vacant However, there are certain exemptions and reliefs available that landlords can take advantage of to reduce their liability.
One common exemption for empty property is the six-month empty property rate relief This relief applies to commercial properties that have been empty for more than three months Landlords can apply for a 100% discount on their business rates for the first three months, followed by a 50% discount for the next three months This can provide some much-needed financial relief for landlords who are struggling to find tenants for their property.
Another option for landlords is to take advantage of the Government’s small business rate relief scheme This scheme is aimed at supporting small businesses by providing discounts on their business rates Landlords who own properties that are empty but have the potential to be occupied by small businesses may be able to qualify for this relief By actively seeking out small business tenants for their empty property, landlords can not only reduce their business rates liability but also generate rental income in the process.
In some cases, landlords may be able to apply for hardship relief if they are experiencing financial difficulties due to their business rates liability avoiding business rates on empty property. This relief is granted on a case-by-case basis and is intended to provide temporary relief to landlords who are struggling to meet their financial obligations Landlords who can demonstrate that they are facing genuine financial hardship may be eligible for a reduction in their business rates.
One creative way to avoid business rates on empty property is to temporarily lease the property to a charity or community group In the UK, properties that are occupied by registered charities are eligible for an 80% discount on their business rates By leasing their empty property to a charity or community group, landlords can significantly reduce their business rates liability while also supporting a worthy cause.
Alternatively, landlords can explore the option of converting their empty property into a residential property In the UK, residential properties are exempt from business rates, so converting a commercial property into a residential one can eliminate the business rates liability altogether While this option may require a significant investment upfront, the long-term savings on business rates could make it a worthwhile investment.
Lastly, landlords should consider seeking professional advice from a chartered surveyor or property consultant These experts can provide guidance on the best strategies for minimizing business rates on empty property and help landlords navigate the complex rules and regulations surrounding business rates By working with a professional, landlords can ensure that they are taking full advantage of all available exemptions and reliefs to reduce their business rates liability.
In conclusion, business rates on empty property can be a significant financial burden for landlords However, there are several strategies that landlords can use to avoid or reduce their business rates liability By exploring options such as empty property rate relief, small business rate relief, hardship relief, charity leases, property conversions, and seeking professional advice, landlords can minimize the impact of business rates on their empty property By being proactive and creative in their approach, landlords can effectively manage their business rates liability and protect their bottom line.