When it comes to owning or leasing commercial property, one of the major considerations that businesses need to take into account is the issue of business rates. These rates are essentially a form of tax levied on commercial properties, and they can often be a significant cost for businesses to bear. However, one of the more frustrating aspects of business rates is the fact that they still need to be paid even if a commercial property is sits empty. In this article, we will delve into the world of business rates on empty commercial property and explore some ways in which businesses can potentially avoid or reduce this burden.
First and foremost, it is important to understand why business rates on empty commercial property exist in the first place. The rationale behind this policy is to prevent property owners from deliberately keeping their properties empty in order to avoid paying taxes. By levying business rates on empty properties, the government aims to encourage property owners to put their buildings to productive use, thus stimulating economic activity and ensuring that commercial properties are not left vacant for extended periods of time.
However, for businesses that find themselves in the unfortunate situation of having an empty commercial property on their hands, the prospect of having to pay business rates on top of all the other costs can be a daunting one. Fortunately, there are some options available to businesses that can help alleviate this burden.
One potential way to avoid or reduce the impact of business rates on empty commercial property is to apply for an exemption or relief. In certain circumstances, businesses may be eligible for relief from paying business rates on an empty property. For example, if a property is undergoing refurbishment or is considered to be in an area of economic hardship, the business may be able to apply for a temporary exemption or reduction in their rates. It is worth noting that the rules governing exemptions and relief can vary depending on the local authority, so businesses should consult with their local council to determine what options are available to them.
Another option for businesses looking to reduce the impact of business rates on empty commercial property is to consider leasing the property out on a short-term basis. By finding a temporary tenant for the property, businesses may be able to qualify for exemptions or relief from paying business rates. Additionally, leasing out the property can help generate some income and offset the costs associated with owning a vacant property.
Alternatively, businesses could explore the option of subletting the property to another tenant. By subletting the property, businesses can generate some income from the property while also potentially qualifying for exemptions or relief from paying business rates. However, it is important to carefully review the terms of the lease agreement and ensure that subletting is permitted under the terms of the original lease.
For businesses that are unable to find a tenant or sublet the property, another option to consider is applying for a reduction in the rateable value of the property. The rateable value is used to calculate the amount of business rates that need to be paid, so by successfully appealing for a reduction in the rateable value, businesses can lower their business rates bill on an empty property.
In conclusion, the issue of business rates on empty commercial property can be a significant burden for businesses to bear. However, by exploring the various options available – such as applying for exemptions or relief, leasing the property out, subletting, or appealing for a reduction in the rateable value – businesses can potentially reduce or avoid the impact of business rates on their empty properties. By taking proactive steps to address this issue, businesses can not only save on costs but also make the most out of their commercial properties in a challenging economic environment.