Empty property is a concern for many businesses, as it can result in substantial costs in the form of business rates. Business rates on empty property can add up quickly, putting a strain on cash flow and affecting the profitability of a business. Fortunately, there are ways to mitigate these costs and avoid paying business rates on empty property. In this article, we will explore some strategies that businesses can use to avoid or reduce the impact of business rates on empty properties.
One of the most common ways to avoid business rates on empty property is through temporary occupation. By allowing a temporary occupier to use the property for a short period of time, businesses can benefit from a full exemption from business rates for that period. This can be a cost-effective way to avoid paying business rates on empty property, especially if the property is likely to remain vacant for an extended period of time.
Another strategy that businesses can use to avoid business rates on empty property is through the use of property guardians. Property guardians are individuals or companies that occupy empty properties on a temporary basis to provide security and maintenance services. By using property guardians, businesses can benefit from a reduced rate of business rates, as the property is considered to be occupied and therefore eligible for a lower rate.
Businesses can also consider appealing to the local council for a reduction in business rates on empty property. In some cases, businesses may be able to argue that the property is not suitable for occupation due to structural issues or other reasons, which could result in a reduction or exemption from business rates. It is important to provide supporting evidence to the council when making an appeal, such as structural surveys or reports from professionals.
Furthermore, businesses can explore the option of using the property for storage purposes in order to avoid business rates on empty property. By using the property for storage, businesses can demonstrate that the property is being actively used and therefore qualify for a lower rate of business rates. This can be a practical solution for businesses that have surplus inventory or equipment that needs to be stored temporarily.
Businesses can also consider leasing the property to a charity or community organization in order to avoid paying business rates on empty property. Charities and community organizations are eligible for full exemptions from business rates, so by leasing the property to them, businesses can benefit from a reduction or exemption from business rates. This can be a win-win situation for both parties, as charities and community organizations can benefit from free or reduced rent, while businesses can avoid paying business rates on empty property.
Another option for businesses looking to avoid business rates on empty property is to consider selling or developing the property. By selling the property, businesses can transfer the responsibility of paying business rates to the new owner, while also generating revenue from the sale. Alternatively, businesses can consider developing the property for a new purpose, such as residential or commercial use, in order to generate income and avoid paying business rates on empty property.
In conclusion, there are various strategies that businesses can use to avoid business rates on empty property. From temporary occupation and property guardians to appealing to the council and using the property for storage or leasing to charities, businesses have several options to choose from. By being proactive and exploring these strategies, businesses can minimize the impact of business rates on empty property and ensure that their cash flow remains healthy. Ultimately, avoiding business rates on empty property can help businesses maintain profitability and contribute to their long-term success.