On Tuesday, 25 March 2025, 1st Formations was proud to feature at ASTOP’s latest event – ‘Navigating the Sea Change of Mitigating Empty Rates’.
The event brought together landlords and property developers to discuss how donating unused commercial space to charity can offer a smart, socially conscious alternative to business rates liability.
1st Formations was honoured to be recognised for our impactful partnership with ASTOP (A Space to Occupy). We don’t receive business rates relief for donating our spare office space. We do it purely because we believe it’s the right thing to do. Hopefully, this event will influence others to follow suit.
Here is what the event covered and why 1st Formations was featured.
Key Takeaways
- Empty commercial properties are still liable for business rates. After a short exemption period, landlords must usually pay full rates on vacant space unless they qualify for specific relief.
- Unethical rates avoidance tactics are risky and ineffective, whereas legitimate partnerships with charities offer a more innovative alternative.
- ASTOP helps landlords reduce business rates while supporting charities urgently needing affordable space. It’s a win-win solution that 1st Formations proudly supports.
How Business Rates apply to vacant properties
Business rates are a property tax charged on most non-domestic properties in the UK. They are similar to Council Tax, but while Council Tax applies to residential properties, business rates apply to properties used for commercial purposes.
If you own a commercial property and it becomes vacant, you are generally still liable to pay business rates. However, several exemptions and reliefs may apply depending on the type and condition of the property.
Standard Empty Property Relief
Most commercial properties are eligible for a 3-month exemption from business rates once they become empty. This grace period gives the owner time to find a new tenant or make decisions regarding the future use of the space.
After the initial three months, full business rates are typically payable again.
Extended Relief for Certain Properties
Some types of properties qualify for a longer exemption period or are continuously exempt while empty. These include:
- Industrial and warehouse properties – eligible for 6 months of exemption.
- Listed buildings – exempt from business rates until reoccupied.
- Properties with a rateable value of less than £2,900 – exempt until reoccupied.
- Properties owned by charities – if the next use of the property is likely to be wholly or mainly for charitable purposes, no rates are due while empty.
- Community Amateur Sports Clubs (CASCs) – properties intended to be used for a CASC’s purposes may also be exempt while vacant.
Full business rates become payable again once the relevant exemption period ends unless a further exemption or relief applies.
How landlords are mitigating business rates on empty properties
We’ve observed some businesses resorting to unethical schemes to avoid paying business rates. These tactics are often ineffective, time-consuming, and ultimately counterproductive — leaving properties vacant when they could be put to meaningful use by charities or community groups.
That’s why connecting with charities offers such a powerful and practical solution — turning empty spaces into opportunities for social good. And that’s exactly where ASTOP comes in.
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ASTOP offers an ethical and practical solution by connecting charities in need of space with landlords who have vacant properties. It’s a win-win: landlords reduce their business rates by having their properties occupied, while charities gain access to rent-free space — significantly lowering their overheads and allowing them to focus more resources on their mission.
1st Formations’ vacant office space
We are providing 3,000 sq.ft. of office space at our Covent Garden HQ to accommodate up to 13 charities.
We don’t receive any business rate reductions or financial incentives for donating our unused office space—we do it because we genuinely believe in using our resources to make a positive impact. Access to space is one of the biggest challenges in the charity sector, second only to funding. By offering our space, we help ease that burden, allowing charities to redirect their limited resources toward creating meaningful change rather than covering costly overheads.
ASTOP founder Shaylesh Patel highlighted this at the event, asking 1st Formations Director Nicholas Campion (who you may recognise as the face of our YouTube channel) to join him on stage to explain more.
After the presentations, the attendees enjoyed some refreshments and networking. We also bumped into some of our valued 1st Formations customers.
Landlords are unaware of the opportunity
According to ASTOP, thousands of UK charities and social enterprises struggle to access affordable workspace even though millions of square feet of commercial property remain vacant in London.
This issue is widespread across the sector. The London Property Alliance and London Funders Report (2022) found that 73% of civil society organisations reported it was “moderately” or “extremely” difficult to find suitable physical space to deliver their services.
The mismatch between unused commercial property and civil society demand highlights a significant opportunity to repurpose vacant space for public good.
Shaylesh shared his thoughts on why more businesses are not donating their unoccupied properties to charities.
There is a significant difference between the number of charities in need of space and number of landlords willing to offer their vacant space. The reason? Landlords are simply unaware of the opportunity. They worry about how they will be perceived, or they don’t understand how business rates exceptions work, so they often prefer to leave property empty rather than give it charities. That’s why it’s so vital to raise awareness.
Learn more about the great work ASTOP does in our exclusive interview with Shaylesh Patel, “Supporting charities with vacant commercial space.”
Interested in donating your vacant commercial space?
We encourage any landlord with vacant commercial property to connect with local charities and put the space to good use.
Contact ASTOP today to learn how donating your property could support a charity and reduce your business rates.
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
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