In-depth Analysis | Legally Reducing Business Rates on Vacant Property: VacatAd’s Tech‑First Solution
Vacant commercial properties in the UK can become expensive burdens for landlords. Owners of empty shops, offices, or warehouses remain liable for business rates—a tax on property occupancy—even when there is no rental income. Across the sector, this adds up to over £1.3 billion a year in business rates paid by landlords on vacant commercial units. Recent rule changes have made obtaining relief harder, increasing the financial strain. However, a new technology-based approach from VacatAd offers a legal way to reduce costs. By creating short-term occupations using plug-and-play devices (such as Wi-Fi routers, motion-sensitive cameras, and remote sensors), VacatAd helps owners stay within the law while significantly cutting business rates on vacant premises.
Vacant Commercial Properties and Business Rates: A Practical Guide to VacatAd’s Compliant 92-Day Occupation Solution
This blog post explains how VacatAd’s system meets the latest regulations, how it differs from tax avoidance schemes, and how it protects properties and benefits the wider community. If you are a commercial landlord, asset manager, or property adviser, you will find practical information on how to lawfully reduce rates on an empty property, keep the building maintained, and gain peace of mind—without making long-term commitments. We will also touch on trends in business rates relief and conclude with details on how to get a free consultation to see what VacatAd can do for you.
The New 92-Day Occupation Rule: What It Is and Why It Matters
The Spring Budget 2024 introduced a significant change: from 1 April 2024, any empty commercial property must be reoccupied for at least three months (around 92 days) to qualify for a new period of business rates relief. This is an increase from the previous requirement of six weeks. In practical terms, a six-week tenancy no longer resets your empty property relief; a minimum of 92 days is now needed.
This rule was introduced to discourage a practice known as “box shifting,” where some landlords let empty buildings for six-week periods to secure a short-term occupancy, then claimed the three- or six-month empty rates exemption, and repeated the cycle. Although not illegal, it was considered an abuse of the rules. By requiring a full three months of occupation, the government aims to curb these rapid cycles and encourage more substantial short-term uses of vacant properties.
For landlords, the 92-day rule is a double-edged sword. It pushes owners to find more meaningful short-term occupants but also means that properties lying empty for longer are subject to full business rates, with fewer chances to reset relief. This has come at a time when landlords already face difficulties from rising vacancy rates, economic uncertainty, and tenants going out of business. Experts warn it will increase costs for landlords, making it more important to adopt new strategies to minimise the impact (Spring Budget analysis: changes to Empty Property Relief will put further financial pressure on landlords – Lexology).
VacatAd’s Technology-First Solution for Vacant Rates Relief
VacatAd was formed to provide a compliant way for landlords to reduce rates on vacant properties under the new rules. The key is having a legitimate 92-day occupation that meets the legal tests for “rateable occupation.” VacatAd achieves this through a technology-based occupancy model that requires very little effort from landlords.
VacatAd takes a short-term lease (just over three months) and installs smart equipment—plug-and-play Wi-Fi routers, security cameras, and sensors—on site. The property is digitally active: VacatAd is the occupier of record and runs its equipment for at least 92 days, satisfying the beneficial use requirement. Once VacatAd leaves, the property becomes empty again, and the landlord can claim a new period of empty rates relief (three or six months, as allowed by law).
During the occupation, VacatAd pays the business rates (as part of its service) and deals with all council notifications and evidence. Wi-Fi logs, sensor data, and council inspections verify that the occupation is genuine. At the end of the tenancy, VacatAd removes its devices, restores the property to its prior condition, and informs the council that it is now empty. The owner then qualifies for a fresh round of relief. This entire process is designed to meet legal requirements and avoid any suggestion of a “sham” arrangement.
VacatAd’s technology-based approach has several advantages:
No disruption to the property: The devices are plug-and-play and require only a power socket. No alterations or fit-outs are needed, and the equipment is removed quickly when the lease ends.
Minimal paperwork for landlords: VacatAd manages council communications, billing, and compliance. The landlord simply grants a short lease and receives regular updates.
Rapid deployment: Equipment can typically be installed and activated within days, with council notifications made immediately.
Flexibility for reoccupation: Once a new tenant is found, VacatAd leaves in under 24 hours, freeing the space with no long notice periods or disruptions. If the building remains vacant, VacatAd can be brought back for another occupancy period.
These features help landlords lawfully avoid paying large sums in empty rates while maintaining transparency with local authorities. VacatAd’s methods reflect established legal precedents around minimal occupations (such as the Makro case), ensuring the occupation stands up to scrutiny (Latest High Court ruling on empty rates’ mitigation case – Place North West).
Why Compliance Is Key: Avoiding Risky “Rates Mitigation” Schemes
Over the years, various questionable schemes have claimed to lower empty rates bills but often involved creating the illusion of occupation. Local authorities are now cracking down on these arrangements, and landlords can face serious financial and legal consequences if a scheme is deemed a sham. Below are a few tactics that have proven risky:
Shell Companies and Liquidation: In this setup, an empty unit is leased to a newly created company that soon dissolves, leaving unpaid rates. Courts now look through these arrangements, and landlords can end up liable for backdated rates plus penalties (From Snail Farming to ‘Property Guardians’: Rates Mitigation Gone Wrong – Verity Management Services).
Token Agriculture Schemes (e.g. “Snail Farms”): Some landlords have claimed an agricultural exemption by placing a few crates of snails in an office, calling it a “snail farm.” Councils have successfully challenged these moves, leading to backdated rates bills, legal costs, and reputational damage (Snail farm scam | Commercial Property | Hart Brown Solicitors).
Bogus Charitable Occupation: Charities can qualify for up to 80% or 100% relief. Some arrangements involve installing a charity in name only, with little real activity on-site. Councils and the Charity Commission are now vigilant in cracking down on such arrangements (Charities given warning on business rates avoidance – Anthony Collins Solicitors).
Fake Places of Worship: Another avoidance tactic is to claim a vacant property is used as a church or prayer room, often with minimal actual worship. Councils have disputed these claims, leading to legal battles and large backdated bills (Ye of little faith? The tax loophole that turns old pubs into places of worship – The Guardian).
Schemes that only create a superficial appearance of occupation carry high risks and can result in retroactive charges, penalties, and reputational harm. VacatAd’s approach, on the other hand, is transparent. It occupies the property, pays the relevant rates during the tenancy, and openly communicates with councils. Because the use (free Wi-Fi and security monitoring) is clearly beneficial, it is more resistant to legal challenges. To date, VacatAd has a 100% success rate and supports over 100 properties across more than 20 local authorities—no council objections to our data logs have arisen.
Protecting Your Property: Security, Maintenance, and Peace of Mind
Leaving a property empty raises the risk of vandalism, squatting, and deterioration. In contrast, VacatAd’s occupation serves as a protective measure:
Security Cameras and Sensors
VacatAd installs modern security cameras that detect motion and send real-time alerts, deterring break-ins and squatting.
Environmental Monitoring
Sensors track temperature and humidity to catch issues like damp or leaks early, before they cause serious damage.
Reduced Insurance Risks
Insurers often look more favourably on properties that have some level of active monitoring, potentially keeping premium increases in check.
Live-in property guardians have sometimes been used to protect vacant sites, but they bring obligations around living conditions, notice periods, and potential complications when it is time to reoccupy. VacatAd’s system does not involve onsite residents and can vacate within 24 hours, leaving the property available for a commercial tenant at short notice.
Turning Empty Space into a Community Asset: Free Wi-Fi and Local Advertising
VacatAd does more than reduce rates. By installing a public Wi-Fi hotspot in each property, VacatAd can offer free internet access to people in the surrounding area. This encourages foot traffic, benefits local residents, and provides a small marketing platform for nearby businesses, who can place adverts on the Wi-Fi landing page. Councils often appreciate that vacant buildings are providing a service, rather than simply standing idle.
Trends and Outlook: Business Rates Relief in a Challenging Market
The property market in 2025 remains challenging. Higher interest rates, changing work patterns (such as remote working), and increasing online shopping have led to many vacant commercial units. Business rates continue to apply after a short grace period, creating financial pressure on landlords who are not collecting rent. Meanwhile, local councils have ramped up their enforcement efforts against questionable rates mitigation practices.
The new 92-day rule reflects the government’s intention to curtail quick resets of empty property relief and push for more meaningful occupation. As a result, property owners who rely on six-week pop-ups or purely nominal uses to reduce rates may find those approaches outdated. VacatAd’s solution fits neatly into the stricter regulatory environment, as it provides a genuine three-month occupation through legitimate, technology-based services. This model is increasingly seen as a straightforward and safer option to mitigate rates without risking legal complications.
Conclusion: Compliance, Savings, and Peace of Mind—Get Your Free Consultation
Empty property business rates need not be an unavoidable loss. VacatAd offers a fully compliant way to achieve genuine occupation for the required period, leading to significant reductions in empty rates while avoiding the pitfalls of dubious schemes. The service provides 24/7 monitoring, protects your building, and maintains a flexible timetable so you can accommodate new tenants with minimal delay.
If you have a vacant commercial property, this is a practical way to lighten your rates burden and keep the asset secure. VacatAd will handle all council communications, document the occupation, and ensure everything is above board. With more than 100 successful implementations and no council objections, the track record speaks for itself.
For a free consultation, contact VacatAd today. We will assess your property and give a realistic projection of how much you can save. You can also try our online Rates Savings Calculator to get an instant estimate.
Stop paying full rates on an empty space—let VacatAd show you a better way.
