commercial property empty rates relief, also known as the empty property rate relief, is a scheme that offers relief from paying business rates on certain types of commercial properties that are empty. This relief is available to property owners who have empty properties that meet the eligibility criteria set by the local government.
Empty property rates can be a significant financial burden for property owners, especially when the property is empty for an extended period of time. The empty rates relief scheme aims to provide some financial support to property owners during these challenging times.
In the UK, business rates are a tax that businesses pay on the non-domestic properties they occupy. The rates are calculated based on the rateable value of the property, which is set by the Valuation Office Agency (VOA). However, when a commercial property is empty, the property owner is still liable to pay business rates unless they are eligible for the empty rates relief.
To qualify for empty rates relief, the property must meet certain criteria. Firstly, the property must be entirely empty, meaning there are no people living or working in the property. Secondly, the property must be unoccupied for a continuous period of at least three months. Thirdly, the property must not be in active use, which means it is not actively being used for business purposes.
There are different types of empty rates relief available to property owners, depending on the situation. One common type of relief is the 100% relief, which means the property owner does not have to pay any business rates on the empty property. This relief is usually available for the first three months that the property is empty.
After the initial three-month period, the property owner may still be eligible for further relief, such as the 50% relief. This relief reduces the amount of business rates that the property owner has to pay by 50%. However, it is important to note that not all properties are eligible for the 50% relief, and the criteria may vary depending on the local government.
In addition to the empty rates relief, there are also exemptions available for certain types of properties. For example, properties that are listed buildings, properties with a rateable value of less than £2,900, and properties owned by charities or community amateur sports clubs may be exempt from paying business rates on empty properties.
It is important for property owners to be aware of the empty rates relief schemes available to them and to take advantage of the relief where possible. By reducing the financial burden of empty rates, property owners can alleviate some of the costs associated with having an empty property and may be more inclined to bring the property back into use.
There are also other benefits to bringing empty properties back into use, such as contributing to the local economy, creating jobs, and improving the overall appearance of the area. By taking advantage of the empty rates relief, property owners can make a positive impact on their local community and help to revitalize the area.
In conclusion, commercial property empty rates relief is a valuable scheme that provides financial support to property owners with empty properties. By understanding the eligibility criteria and taking advantage of the relief where possible, property owners can reduce the financial burden of empty rates and make a positive impact on their local community. Empty rates relief can help to incentivize property owners to bring empty properties back into use and contribute to the overall economic growth of the area.