How to avoid business rates on empty property is a question that plagues many property owners in the UK. With the current economic climate, it’s more important than ever to understand the options available to reduce or eliminate these costly charges.
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How to Avoid Business Rates on Empty Property?
Avoiding business rates on an empty property can feel like a right headache, but there are ways to reduce or even eliminate those costs if you know what to look for. Business rates are charged on commercial properties based on their rateable value, and unfortunately, they don’t stop just because the building isn’t being used. But don’t worry – there are exemptions and strategies that can help.
Business rates can be a significant financial burden for property owners, especially when a property sits vacant. Here are some strategies to help you avoid or reduce these charges:
Re-classifying the property, changing its use, or deferring payment are some of the best options for avoiding business rates on empty properties. However, you must have a valid reason for taking any of these measures.
First off, there’s empty property relief, which gives you a bit of breathing space. If your property is non-industrial, you won’t have to pay business rates for three months after it becomes empty. If it’s an industrial property like a warehouse or factory, you get six months of relief. After that, the full rates kick back in unless your property qualifies for further exemptions. For example, listed buildings and properties with a rateable value under £2,900 are exempt until they’re reoccupied. If your building is legally prohibited from being occupied or owned by a deceased person’s estate, you might also qualify for relief.
Another option is to apply for partial relief if only part of your property is being used. Councils can reassess the rateable value based on the portion of the building that’s occupied. And if your property is undergoing major repairs or renovations that make it unusable, you can contact the Valuation Office Agency (VOA) to potentially pause your business rates while the work is being done.
Some landlords try short-term occupancy schemes to reset their empty property relief period – basically letting someone use the building temporarily so they can claim another round of relief. But be careful with this approach! Since April 2024, the rules have changed, and properties now need to be occupied for at least 13 weeks (up from six weeks) before they qualify for another exemption period. The government’s trying to crack down on quick fixes and encourage proper long-term use of empty buildings.
If none of the exemptions apply, you could consider deferring payments or using a property guardian scheme. Property guardians live in your building legally, which could allow you to apply for reduced rates due to partial occupancy.
It’s a lot to take in, isn’t it? Managing an empty property while dealing with business rates can feel overwhelming, but you don’t have to go it alone. At Property Saviour, we know exactly how stressful this situation can be, and we’re here to help. If you’re stuck with an unoccupied building and want a quick solution without all the hassle, our we buy any property service might be just what you need. Get in touch today – let us take the weight off your shoulders!
What is the empty property relief period?
The empty property relief period is basically a bit of breathing space for property owners who have an unoccupied building. It’s a government scheme that lets you avoid paying business rates for a short time while the property is empty. For most commercial properties, this relief lasts for three months, and for industrial properties like warehouses or factories, it’s six months. After that, you’re usually back to paying full business rates unless your property qualifies for further exemptions – like if it’s in such a poor state it can’t be occupied or has a very low rateable value (under £2,900).
There’s been a recent change to the rules that came into effect in April 2024. Now, if you’ve got a property that’s been empty and then reoccupied, it needs to stay in use for at least 13 weeks (it used to be six weeks) before you can claim another round of empty property relief. It’s all part of the government’s effort to encourage long-term use of empty properties rather than short-term fixes.
For residential properties, it works a little differently. If your home is unfurnished and empty, you might get up to six months of council tax exemption, depending on your local council. If it’s furnished but nobody’s living there, some councils might offer a small discount – usually around 10% – for up to a year. But here’s the kicker: if your home stays empty for over a year, many councils will slap you with an “empty home premium,” which means your council tax bill could go up by 50% or even more.
It can all feel like a lot to deal with, especially if you’re already stressed about what to do with an empty property. That’s where we come in at Property Saviour. If you’re stuck with an empty house or commercial building and just want a quick, hassle-free solution, we can help. Our “we buy any house” service is designed to take the pressure off – no endless waiting, no complicated processes. Just get in touch with us today, and we’ll help you move forward without the headache!
Can you extend the relief period?
Extending the relief period for empty property rates is possible, but it depends on your circumstances and the type of property you own. Normally, when a commercial property becomes vacant, you get a three-month exemption from business rates (or six months for industrial properties like warehouses). After this initial period, you’re expected to pay full rates unless your property qualifies for extended relief.
Certain properties can benefit from longer exemptions. For example, listed buildings are exempt until they’re reoccupied, and buildings with a rateable value under £2,900 also qualify for extended relief. Similarly, properties owned by charities or community sports clubs can continue to claim relief if their next use will be for charitable or sporting purposes. If your property is legally prohibited from occupation or held by the estate of a deceased person, you may also be eligible.
However, recent changes introduced in April 2024 have made things a bit stricter when it comes to resetting the relief period. Previously, landlords could reoccupy their property for six weeks and then claim another round of empty property relief. Now, the rules require properties to be occupied continuously for at least 13 weeks before they can qualify for another exemption period. This change aims to prevent short-term occupancy schemes and encourage genuine long-term use of vacant properties.
If you’re struggling to keep up with business rates on an empty property, there are other options too. You could apply for partial relief if only part of your building is being used or notify the Valuation Office Agency (VOA) if your property is undergoing major repairs or refurbishment that make it unusable. These approaches can help reduce your financial burden while you figure out what to do next.
Managing an empty property can be stressful, especially with these new rules in place. If you’re feeling overwhelmed and just want a simple solution, Property Saviour is here to help. We specialise in buying problematic properties quickly and without hassle – whether it’s dealing with business rates or other challenges. Get in touch today and let us take the pressure off!
What happens after the relief period ends?
When the empty property relief period ends, you’ll need to start paying full business rates on your vacant property unless it qualifies for further exemptions. For most commercial properties, the relief lasts three months, and for industrial properties like warehouses, it’s six months. After that, you’re expected to pay 100% of the business rates as if the property were occupied. It’s a tough pill to swallow, especially if you’re already struggling to find a tenant or a buyer.
There are some exceptions, though. Listed buildings stay exempt until they’re reoccupied, and properties with a rateable value under £2,900 don’t have to pay business rates at all while they’re empty. If your property is owned by a charity or a community sports club and its next use will be for charitable or sporting purposes, you might also qualify for extended relief. But if your property doesn’t fall into one of these categories, you’ll need to brace yourself for the financial hit.
The rules around resetting relief have tightened up recently too. Before April 2024, landlords could let their property out for six weeks and then claim another round of relief when it became empty again. Now, properties have to be reoccupied for at least 13 weeks before they can qualify for another exemption period. This change has made it harder to manage costs through short-term lettings and has left many landlords feeling stuck.
If you’re facing full business rates on an empty property and don’t know what to do next, we understand how stressful it can be. At Property Saviour, we specialise in buying properties quickly and without hassle – even ones with challenges like this. If you’re ready to move on and leave the stress behind, get in touch with us today. We’re here to help!
Are there any permanent exemptions?
Yes, there are permanent exemptions from paying business rates on certain empty properties, and knowing if your property qualifies can save you a lot of stress and money. For example, if your building is listed or classed as an ancient monument, you don’t have to pay business rates while it’s empty, no matter how long it stays unoccupied. The same goes for properties with a rateable value under £2,900 – they’re exempt until someone moves in again. If the law prohibits anyone from occupying your property, or if it’s being kept empty by order of the Crown or a local authority, you’re also off the hook for business rates.
Charities and community amateur sports clubs get a permanent exemption too, as long as the property’s next use will be for charitable or sporting purposes. There are also exemptions if the property is in the hands of a personal representative after someone has died, or if it’s under the control of a liquidator, administrator, or trustee in bankruptcy. These rules are there to help people who genuinely can’t use their property, rather than those just waiting for the right tenant.
If you’re unsure whether your property qualifies, it’s always worth checking with your local council. And if managing an empty property is becoming a burden, Property Saviour is here to help – we specialise in buying all kinds of properties quickly and with no hassle, so you can move on without the worry of ongoing business rates hanging over you.
What about partially occupied properties?
If your property is only partly occupied, you might be able to get some relief on your business rates for the empty part. Normally, you’re expected to pay the full amount whether the building is fully used or just partially, which can feel really unfair if you’re not making use of the whole space. The good news is, local councils have the discretion to offer what’s called “partly occupied property relief” if part of your property is empty for a short period.
You’ll need to contact your council as soon as the situation arises, and they’ll usually ask for a plan showing which areas are in use and which are vacant. If they agree, they’ll get the Valuation Office Agency to split the rateable value between the occupied and unoccupied parts, so you only pay full rates on the bit you’re actually using. The empty part will then qualify for the usual three or six month exemption, depending on the type of property. After that, the full rate applies again. It’s worth noting that this relief is meant for temporary situations, like if you’re moving in or out gradually, or carrying out building works.
If you’re feeling overwhelmed by the paperwork or the cost of holding onto a property you’re not fully using, Property Saviour is here to help. We specialise in buying all kinds of properties quickly and with no hassle, so you can move on without the stress of business rates hanging over you.
Can you challenge your property’s rateable value?
Yes, you can challenge your property’s rateable value if you believe it’s too high or incorrect. The process in England and Wales is called “Check, Challenge, Appeal.” First, you check the details held by the Valuation Office Agency (VOA) to make sure everything about your property is accurate. If you spot any errors or think the rateable value is unfair, you can submit a “Check case” to the VOA with evidence to support your claim. If you’re still not satisfied after this stage, you can move on to the “Challenge” step, where you formally argue your case and suggest what you believe the correct rateable value should be, again providing supporting evidence.
If the VOA doesn’t agree with your challenge, you have the right to appeal to the independent Valuation Tribunal, which will review both sides before making a decision. You don’t need a lawyer to do this, and you can handle the process yourself or appoint an agent to help. Just remember, you must complete each stage in order, and there are time limits for each step, so it’s important to act promptly if you want to dispute your property’s rateable value.
Can I avoid business rates by removing utilities?
No, you can’t avoid business rates simply by removing utilities from your property. Disconnecting water, gas, or electricity—or even making the building uninhabitable on purpose—doesn’t exempt you from paying business rates and could actually land you in legal trouble. Councils and the Valuation Office Agency look at whether the property is capable of occupation, not just whether it has working utilities.
If you’re hoping for relief, it’s better to apply for empty property relief or see if your building qualifies for an exemption, such as being listed, having a low rateable value, or being genuinely unfit for use due to major repairs. If you’re feeling overwhelmed by business rates on an empty property, Property Saviour is here to help—we buy all kinds of properties quickly and with no hassle, so you can move on without the stress.
What if my property is uninhabitable?
If your property is genuinely uninhabitable—meaning it can’t be used at all, not just that it’s empty or in need of a bit of work—you might not have to pay business rates. The key is that the building must be incapable of beneficial occupation, for example, if it’s in such poor condition that it can’t be economically repaired, or if it’s being completely gutted for major renovations. In these cases, the Valuation Office Agency can decide to take your property out of the rating list altogether, which means you won’t be charged business rates until it’s fit for use again.
It’s important to note that deliberately making a property uninhabitable just to avoid rates won’t work—councils and the authorities are wise to this and have anti-avoidance measures in place. But if your property is genuinely unusable, for example due to fire damage, structural issues, or major refurbishment, you should contact the Valuation Office Agency and your local council as soon as possible. They’ll usually want to inspect the property and see evidence of the condition or the works being carried out.
If you’re feeling overwhelmed by the process or the costs of holding onto an uninhabitable property, Property Saviour is here to help. We specialise in buying all kinds of properties quickly and with no hassle, so you can move on without the stress of business rates hanging over you.
Can I get relief if I’m renovating the property?
Yes, you can sometimes get relief from business rates if you’re renovating your property, but it depends on the extent of the works and whether the building can still be used during the refurbishment. If your property is empty because it’s being repaired or refurbished and it genuinely can’t be used, you may be able to get empty property relief—usually three months for most commercial buildings and six months for industrial ones. In some cases, if the renovations are so extensive that the property is completely unusable, you can ask the Valuation Office Agency (VOA) to remove it from the rating list altogether, which means you won’t have to pay business rates until it’s fit for use again.
There’s also something called “improvement relief.” If you make qualifying improvements to your property—like adding new features or increasing its size—you might be eligible for a year’s relief from higher business rates, starting from when the work is completed. To get this, you need to have occupied the property during and after the improvements, and the VOA will assess whether your works qualify.
It’s important to let your local council and the VOA know as soon as you start major repairs or renovations, as they’ll want to check the details and may need to inspect the property. If you’re not sure what you’re entitled to, or you’re feeling overwhelmed by the process and the costs, Property Saviour is here to help. We specialise in buying all kinds of properties quickly and with no hassle, so you can move on without the stress of business rates hanging over you.
Comparison of relief options
Remember, while these strategies can help reduce your business rates burden, it’s always best to consult with a professional advisor or your local council for the most up-to-date and relevant advice for your specific situation.
| Method | Duration | Pros | Cons |
|---|---|---|---|
| Empty property relief | 3-6 months | Automatic | Limited time |
| Charitable occupation | Ongoing | 80-100% relief | Must be genuine charity use |
| Property guardians | Ongoing | Switches to council tax | Requires management |
| Change of use | Permanent | Long-term solution | Planning permission needed |
Avoidance of Future Market Uncertainties
At Property Saviour, we understand the challenges of owning an empty commercial property. While there are strategies to mitigate costs, selling your vacant property could be the most beneficial solution for your financial future.
We specialise in buying problematic properties quickly for cash, including empty commercial buildings. Our process is straightforward, with no estate agents, surveys, or last-minute price reductions.
We can complete the purchase within 10 days or at a timescale that suits you.
If you’re considering selling your empty commercial property, get in touch with us today. We’ll provide a fair, no-obligation offer and can even contribute £1,500 towards your legal fees. Let Property Saviour help you turn your vacant asset into a financial opportunity.
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