empty business rates mitigation, often referred to as EBRR, is a process that allows business owners to reduce or even eliminate the rates payable on vacant commercial properties. This can be a significant cost-saving opportunity for businesses that have empty premises due to reasons such as relocation, refurbishment, or simply waiting for a new tenant.
In the UK, business rates are taxes paid on non-residential properties, including shops, offices, warehouses, and factories. These rates are based on the rateable value of the property and are set by the government. In the case of vacant properties, business owners are still required to pay business rates if the property remains empty for a certain period of time.
Empty business rates mitigation provides a way for businesses to reduce or avoid paying these rates on empty properties. There are several ways in which business owners can mitigate empty business rates, including:
1. Temporary occupation: One of the most common ways to mitigate empty business rates is through temporary occupation of the property. By allowing a temporary occupier to use the space for a short period of time, business owners can claim empty property rate relief. This can be a win-win situation for both parties, as the temporary occupier gets to use the premises at a reduced cost, while the property owner avoids paying full business rates.
2. Using the property for storage: Another option for mitigating empty business rates is to use the property for storage purposes. This can be a practical solution for businesses that have excess stock or equipment that needs to be stored temporarily. By using the property for storage, business owners may be able to qualify for storage rate relief, which can significantly reduce the amount of rates payable on the property.
3. Renovation or refurbishment: Business owners who are planning to renovate or refurbish their vacant properties can also benefit from empty business rates mitigation. By demonstrating that the property is undergoing substantial works to bring it back into use, business owners may be eligible for renovation rate relief. This can help to offset the costs of the renovation project and reduce the financial burden of paying full business rates on an empty property.
4. Charity occupation: Another option for mitigating empty business rates is to allow a charity to occupy the property temporarily. Charities are eligible for mandatory rate relief, which means that business owners can claim 80% relief on the property if it is occupied by a registered charity. This can be a great way for businesses to give back to the community while also reducing their business rates liability.
5. Demolition or redevelopment: In some cases, business owners may choose to demolish or redevelop their vacant properties in order to mitigate empty business rates. By providing evidence that the property is no longer economically viable in its current state and that demolition or redevelopment is the only practical solution, business owners may be able to claim demolition rate relief. This can help to offset the costs of demolition or redevelopment and reduce the financial impact of paying business rates on an empty property.
It is important for business owners to be aware of the options available for empty business rates mitigation and to carefully consider which option is most suitable for their specific circumstances. By taking advantage of these mitigation strategies, businesses can save money on their rates bills and make the most of their vacant properties.
In conclusion, empty business rates mitigation is a valuable tool for business owners who have vacant commercial properties. By exploring the options for mitigating empty business rates, business owners can reduce or eliminate the financial burden of paying rates on empty properties. Whether through temporary occupation, storage use, renovation, charity occupation, or demolition, there are several ways in which business owners can benefit from empty business rates mitigation. By understanding the process and requirements for each mitigation strategy, business owners can make informed decisions and maximize their savings on business rates.