When it comes to owning commercial property, there are various expenses and taxes that property owners need to consider. One of these expenses is business rates, which are taxes that are levied on most non-domestic properties in the UK. However, there are certain situations in which property owners may be able to claim relief on their business rates, one of which is known as empty rates relief.
empty rates relief, also known as business rates relief for vacant properties, is a form of relief that allows property owners to claim a reduction in their business rates if their property is empty. This relief is designed to help property owners who are facing financial difficulties due to having an empty property.
Why do properties become empty?
There are various reasons why commercial properties may become empty. Some of the common reasons include businesses closing down or relocating, properties undergoing renovation or repair works, or properties being unable to secure tenants due to market conditions. Whatever the reason may be, having an empty property can be a financial burden for property owners, as they are still liable to pay business rates on the property.
How does empty rates relief work?
empty rates relief allows property owners to claim relief on their business rates for a certain period of time while their property is empty. The amount of relief that can be claimed and the duration for which it is applicable may vary depending on the local council and the circumstances of the property.
In most cases, property owners can claim 100% relief on their business rates for the first three months that the property is empty. After the initial three months, the relief that can be claimed may reduce to 50% or even zero, depending on the council’s policy. Some councils may offer extended relief periods for properties that remain empty for a longer period of time, especially in cases where the property is undergoing renovation or repair works.
It’s important for property owners to keep in mind that they must apply for empty rates relief with their local council in order to claim the relief. Failure to do so may result in property owners having to pay the full business rates amount for their empty property.
Are there any exceptions to empty rates relief?
While empty rates relief can provide much-needed financial relief for property owners with vacant properties, there are certain exceptions to the relief. For example, properties that are exempt from business rates altogether, such as agricultural land or buildings, will not be eligible for empty rates relief. Additionally, properties that have been deliberately left empty by property owners, such as for speculative purposes, may not be eligible for the relief.
Property owners should also be aware that empty rates relief is not automatic and must be applied for through their local council. It’s important to provide the council with all necessary information and documentation supporting the claim for relief in order to ensure that the claim is processed and approved in a timely manner.
In conclusion, empty rates relief can be a valuable form of financial assistance for property owners who are facing difficulties due to having empty commercial properties. By understanding how empty rates relief works, property owners can take advantage of this relief to help alleviate some of the financial burdens associated with owning and maintaining vacant properties. To find out more about empty rates relief and how to apply for it, property owners should contact their local council for further information.