As a property owner, you are likely aware of the various costs associated with owning and maintaining a property. One such cost that can significantly impact your finances is business rates. These rates are charged on most non-domestic properties, including commercial buildings, industrial units, and shops. However, there is a relief available for properties that are empty or unoccupied for a certain period known as empty rates relief.
Empty rates relief, also known as empty property relief, is a valuable benefit for property owners facing financial challenges due to vacancies in their properties. In this article, we will explore the concept of empty rates relief, who is eligible for it, and how to apply for it.
What is empty rates relief?
Empty rates relief is a provision by which property owners can qualify for a reduction in or exemption from paying business rates on properties that are unoccupied for a specified period. This relief helps alleviate some of the financial burdens associated with owning a vacant property and encourages property owners to bring their empty properties back into use.
The specific rules and regulations governing empty rates relief vary depending on the location of the property. In England, for example, business rates are charged at the full rate for the first three months that a property is empty. After this initial three-month period, most commercial properties receive a 50% discount on their business rates for an additional three months. Industrial properties, however, are exempt from empty rates for the first six months.
Additionally, certain properties may be eligible for extended empty rates relief beyond the initial six-month period. Properties undergoing major structural repairs or undergoing a change in ownership, for example, may qualify for a further 100% exemption from business rates for up to 12 months.
Who is Eligible for empty rates relief?
The eligibility criteria for empty rates relief vary depending on the circumstances surrounding the vacancy of the property. Generally, properties that are unoccupied due to circumstances beyond the owner’s control, such as fire damage or legal disputes, may be eligible for relief. Properties that are actively marketed for rent or sale may also qualify for empty rates relief.
It is important to note that certain types of properties do not qualify for empty rates relief. These include properties that are derelict or in disrepair, properties that are exempt from business rates altogether, and properties that are being used for storage purposes without the necessary planning permission.
How to Apply for empty rates relief
If you believe that your property may be eligible for empty rates relief, it is essential to take the necessary steps to apply for the relief. The process for applying for empty rates relief varies depending on the location of the property, so it is crucial to consult the local council or rating authority for guidance.
In most cases, property owners will need to provide evidence to support their application for empty rates relief. This evidence may include details of when the property became vacant, the reasons for its vacancy, and any efforts that have been made to bring the property back into use. Property owners may also be required to provide proof of their ongoing efforts to market the property for rent or sale.
It is important to note that empty rates relief is not automatically granted and that property owners must apply for the relief. Failure to do so may result in penalties or fines for non-payment of business rates on vacant properties.
In conclusion, empty rates relief is a valuable benefit for property owners facing financial challenges due to vacant properties. By understanding the concept of empty rates relief, knowing who is eligible for the relief, and how to apply for it, property owners can take advantage of this provision to alleviate some of the financial burdens associated with owning unoccupied properties. Empty rates relief can provide much-needed financial relief and encourage property owners to bring their empty properties back into use.