empty rates relief, also known as void rates relief, is a valuable benefit available to property owners who have vacant commercial premises. In the United Kingdom, business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, when a property is empty, it can create a financial burden for the owner as they are still liable for paying business rates even though the property is not generating any income.
This is where empty rates relief comes into play. It provides property owners with a temporary reprieve from paying business rates on vacant properties, thereby helping to alleviate some of the financial strain that comes with owning unused commercial premises. Understanding how empty rates relief works and how to apply for it can be crucial for property owners looking to minimize their expenses during periods of vacancy.
There are various types of empty rates relief available to property owners, each with its own criteria and eligibility requirements. The most common type is known as “empty property relief,” which provides a 100% exemption from business rates for the first three months that a property is empty. After this initial period, the relief is reduced to 50% for the next three months, and then the full rate is payable thereafter.
In addition to empty property relief, there is also “listed building exemption,” which provides a 100% exemption from business rates for empty listed buildings. This can be a significant benefit for property owners with historic or architecturally significant buildings that may be difficult to lease or sell. Another type of relief is “charitable exemption,” which provides 80% relief for properties that are owned by registered charities and used for charitable purposes.
It is important for property owners to be aware of the different types of empty rates relief available to them and to understand the eligibility criteria for each. By taking advantage of these relief schemes, property owners can save significant amounts of money on their business rates during periods of vacancy.
Applying for empty rates relief is a relatively straightforward process, but it does require some documentation and evidence to support the application. Property owners will need to provide details about the property, including its address, rateable value, and the reason for the vacancy. They may also need to provide evidence of efforts to market the property for lease or sale, such as property listings, correspondence with agents, and viewing records.
It is essential for property owners to keep detailed records of their efforts to market vacant properties, as this information will be crucial in supporting their application for empty rates relief. Property owners should also be aware of the deadlines for applying for relief, as missing these deadlines could result in penalties or a loss of relief entitlement.
In addition to applying for empty rates relief, property owners should also consider other ways to minimize their business rates liability. For example, they may be able to apply for “small business rates relief” if they occupy a property with a rateable value below a certain threshold. This relief can provide significant savings for small businesses and sole traders who may be struggling to cover the cost of business rates.
Property owners may also be eligible for relief under the “Retail Discount Scheme,” which provides up to a 50% discount on business rates for retail properties with a rateable value below a certain threshold. This scheme is designed to support small retailers and encourage investment in high street businesses.
Overall, empty rates relief is a valuable benefit for property owners with vacant commercial premises. By understanding the different types of relief available and the application process, property owners can take advantage of this scheme to reduce their business rates liability during periods of vacancy. Keeping detailed records of marketing efforts and meeting application deadlines are essential steps in securing empty rates relief and minimizing financial strain during challenging times.