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
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.
What is the empty property relief period?
Empty property relief provides a temporary reprieve from business rates. For most commercial properties, you don’t have to pay business rates for the first three months of vacancy. Industrial properties, such as warehouses, enjoy a longer relief period of six months.
Can you extend the relief period?
In some cases, you can extend the relief period beyond the initial three or six months:
• Listed buildings are exempt until reoccupied
• Properties with a rateable value under £2,900 are exempt until reoccupied
• Charities and community amateur sports clubs may qualify for extended relief
What happens after the relief period ends?
Once the relief period expires, you’ll typically need to pay full business rates. However, there are ways to potentially avoid or reduce these charges:
- Temporary occupation: Occupy the property for a short period (at least six weeks) to reset the relief period
- Change of use: Apply to change the property’s classification from commercial to residential
- Charitable occupation: Allow a charity to use the space for their purposes
- Property guardians: Use a property guardian scheme to change the building’s status to residential
Are there any permanent exemptions?
Some properties are permanently exempt from business rates:• Agricultural land and buildings
• Fish farms
• Places of public religious worship
• Buildings used for training or welfare of disabled people
What about partially occupied properties?
If only part of your property is empty, you might be able to get relief on that portion. Contact your local council to discuss partial occupation relief.
Can you challenge your property’s rateable value?
If you believe your property’s rateable value is too high, you can challenge it through the Valuation Office Agency. A successful challenge could lower your business rates.
Can I avoid business rates by removing utilities?
Removing utilities or intentionally damaging the property to avoid rates is not advisable and could lead to legal issues.
What if my property is uninhabitable?
If your property is truly uninhabitable due to severe damage, you may be able to have it removed from the rating list. Contact the Valuation Office Agency to discuss your situation.
Can I get relief if I’m renovating the property?
There’s no specific relief for renovation, but if the work makes the property uninhabitable, you might qualify for an exemption. Always check with your local council..
Useful tips for avoiding business rates
• Keep detailed records of when your property becomes vacant
• Explore all possible exemptions and reliefs
• Consider alternative uses for your property during vacant periods
• Stay in regular contact with your local council about your property’s status
• Plan ahead for when relief periods are due to end
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.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.