empty rates relief, also known as empty property relief, is a valuable financial incentive provided by the government to owners of unoccupied commercial properties. The relief is designed to help alleviate the financial burden of owning vacant property by reducing or eliminating the business rates that would normally be payable on such properties. In this article, we will explore the basics of empty rates relief, who is eligible for it, and how to apply for it.
First and foremost, it is important to understand what business rates are and why they are levied on properties. Business rates are a tax imposed on most non-domestic properties in the UK, including shops, offices, warehouses, and factories. The rates are based on the rateable value of a property, which is determined by the Valuation Office Agency (VOA). The local council uses the rateable value to calculate the amount of rates payable by the property owner.
When a commercial property becomes vacant, the owner is still liable to pay business rates on the property, even if it is not generating any income. This can place a significant financial strain on property owners, especially during times of economic uncertainty or when a property is undergoing renovation or refurbishment. empty rates relief was introduced as a way to provide some relief to property owners in these situations.
There are several types of empty rates relief available, each designed to cater to different circumstances. The most common type of relief is the 100% exemption, which applies to properties that have been empty for a specified period, usually three months for industrial properties and six months for other types of commercial properties. This means that the property owner does not have to pay any business rates on the property during the exemption period.
In addition to the 100% exemption, there are other forms of relief available, such as the 50% discount, which reduces the amount of rates payable by half after the initial exemption period has expired. There is also discretionary relief, which is granted by the local council on a case-by-case basis. This type of relief is typically awarded to properties that are undergoing major refurbishment or redevelopment, or that are unable to be occupied due to circumstances beyond the owner’s control.
In order to be eligible for empty rates relief, certain criteria must be met. The property must be unoccupied and capable of occupation, meaning that it is not in such a state of disrepair that it is uninhabitable. The owner must also be able to provide evidence that they are actively trying to rent or sell the property, and that they have taken reasonable steps to secure the property and prevent it from falling into disrepair or becoming a nuisance to the local community.
Applying for empty rates relief is a relatively straightforward process, but it is important to be aware of the deadlines and requirements set out by the local council. Property owners must complete an application form and provide supporting documentation, such as proof of ownership and evidence of efforts to market the property. The council will review the application and make a decision on whether to grant relief based on the information provided.
It is worth noting that empty rates relief is not automatic and must be applied for separately from other forms of business rates relief. Property owners should keep in mind that relief is granted at the discretion of the local council and may be subject to certain conditions, such as regular inspections of the property to ensure that it remains unoccupied and in a state of readiness for occupation.
In conclusion, empty rates relief is a valuable financial incentive that can provide much-needed relief to property owners facing the burden of paying business rates on unoccupied commercial properties. By understanding the basics of empty rates relief, who is eligible for it, and how to apply for it, property owners can take advantage of this valuable relief and alleviate some of the financial stress that comes with owning vacant property.