commercial property empty rates relief, also known as empty property rate relief, is a term that refers to the relief provided to owners of empty commercial properties. This relief is given to property owners to help alleviate the financial burden of paying business rates on vacant properties. In this article, we will delve into what commercial property empty rates relief entails, who is eligible for it, and how one can apply for it.
Empty rates relief was introduced as a way to support property owners who are faced with the challenge of keeping their properties vacant due to various reasons such as refurbishment, market conditions, or awaiting a new tenant. Paying business rates on empty properties can be a significant financial burden for property owners, especially when the property is not generating any income.
In the UK, business rates are local taxes that are levied on non-domestic properties, including commercial properties. These rates are calculated based on the rateable value of the property and are charged by local authorities. When a commercial property becomes empty, the owner is still liable to pay business rates unless they qualify for empty rates relief.
There are several types of empty rates relief available to commercial property owners, depending on the circumstances of the property. The most common type of relief is the empty property rate relief, which provides a 100% exemption from paying business rates on commercial properties that have been empty for a certain period. In England, Wales, and Scotland, properties with a rateable value of less than £2,900 are eligible for this relief for as long as they remain empty.
Another type of relief is known as the industrial derating relief, which applies to certain industrial properties that have been empty for an extended period. Industrial properties are eligible for a 100% exemption from paying business rates for the first six months, followed by a 10% reduction for the next 18 months. This relief is intended to encourage the reuse of industrial properties and prevent them from remaining vacant for long periods.
In addition to these reliefs, there are also specific exemptions available for particular types of properties, such as listed buildings, properties that are undergoing structural repairs, or properties that are part of a phased development scheme. Property owners should consult with their local authority to determine if they qualify for any of these exemptions.
To apply for commercial property empty rates relief, property owners must contact their local authority and provide evidence to support their claim. This evidence may include documentation showing the date the property became empty, the reason for its vacancy, and any plans for reoccupation or redevelopment. Property owners should be prepared to provide additional information as requested by the local authority to verify their eligibility for relief.
It is essential for property owners to be proactive in applying for empty rates relief as soon as their property becomes vacant. Delaying the application process can result in hefty business rates bills that could have been avoided if relief had been granted earlier. By taking advantage of empty rates relief, property owners can alleviate the financial burden of maintaining vacant properties and focus on finding new tenants or redeveloping the property.
In conclusion, commercial property empty rates relief is a valuable resource for property owners who are faced with the challenge of keeping their properties vacant. By understanding the types of relief available, who is eligible for it, and how to apply for it, property owners can take advantage of this relief to ease the financial burden of paying business rates on empty properties. It is essential for property owners to be proactive in seeking empty rates relief and to work closely with their local authority to ensure that they meet all the necessary requirements to qualify for relief.