empty rates relief, also known as void rates relief, is a beneficial scheme that offers commercial property owners the opportunity to save significant amounts of money on their business rates bill. This relief is especially valuable for property owners who find themselves with empty or unoccupied properties, as it can help alleviate the financial burden of paying business rates on those properties.
Business rates are taxes that are charged on most non-domestic properties in the UK, including shops, offices, pubs, warehouses, and factories. These rates are based on the rateable value of the property and are used to help fund local services such as schools, roads, and waste collection. However, when a property is vacant, business rates still apply, which can put a strain on property owners who are not generating any income from the empty property.
This is where empty rates relief comes in. The relief is designed to provide financial support to property owners by reducing or even completely eliminating the amount of business rates they have to pay on empty properties. The relief is available for a limited period of time, typically three months for commercial properties and six months for industrial properties, and can help property owners save thousands of pounds each year.
There are several types of empty rates relief available, including:
1. Empty Property Relief: This is the most common type of relief and is available to most commercial property owners. It provides a 100% discount on business rates for the first three months that a property is empty, followed by a 50% discount for the next three months. After six months of vacancy, the property will go back to being charged the full business rates amount.
2. Industrial Relief: This relief is specifically for industrial properties such as warehouses and factories. It provides a 100% discount on business rates for the first six months that a property is empty, after which the property will be charged the full amount.
3. Listed Building Relief: Properties that are listed as historic buildings may be eligible for listed building relief, which can provide a 100% discount on business rates for as long as the property remains empty.
4. Charitable Relief: Charities that own commercial properties may be eligible for charitable relief, which can provide a 80% discount on business rates for any period that the property is empty.
Taking advantage of empty rates relief can result in significant savings for property owners. For example, a property with an annual business rates bill of £10,000 could save up to £5,000 if the property remains empty for six months and qualifies for the relief. This savings can help property owners cover other expenses related to the property or invest in improvements to make the property more attractive to potential tenants.
It is important for property owners to be aware of the eligibility criteria for empty rates relief and to apply for the relief in a timely manner. In many cases, property owners will need to provide evidence that the property is genuinely empty and that efforts have been made to actively market the property for rent or sale. Failure to comply with the requirements could result in the property owner being disqualified from receiving the relief.
Property owners can also benefit from working with a professional rates advisor to help navigate the complex rules and regulations surrounding empty rates relief. These advisors can provide valuable guidance on the application process and help property owners maximize their savings by ensuring they are taking advantage of all available relief options.
In conclusion, empty rates relief is a valuable scheme that can help commercial property owners save money on their business rates bill when their properties are vacant. By understanding the different types of relief available and meeting the eligibility criteria, property owners can maximize their savings and alleviate the financial burden of paying business rates on empty properties. Working with a professional rates advisor can also help property owners navigate the process and ensure they are receiving the maximum relief available.