As a property owner or manager, you know that one of the most frustrating aspects of owning a commercial property is dealing with empty rates when your property is not generating any income. Empty rates relief can provide some respite in such situations, but many property owners are not fully aware of what it entails and how to make use of it.
What is empty rates relief?
Empty rates relief, also known as empty property rate relief, is a scheme offered by the government to provide financial assistance to property owners who have vacant properties. In the United Kingdom, properties that have been empty for a certain period of time are subject to empty property rates, which can be a significant financial burden. Empty rates relief aims to alleviate this burden by reducing or eliminating the rates payable on vacant properties.
How Does empty rates relief Work?
Empty rates relief works by providing a temporary exemption or reduction in the business rates that property owners are required to pay on empty properties. The specific terms and conditions of empty rates relief can vary depending on the local council or government authority that governs the property’s location. Generally, however, empty rates relief is available to property owners for a set period of time after a property becomes vacant.
Property owners can apply for empty rates relief by submitting an application to the relevant local council or government authority. The application process typically requires property owners to provide evidence of the property’s vacancy, such as the date on which it became vacant and the reasons for its vacancy. Once the application is approved, property owners will receive a reduction in their business rates bill for the duration of the relief period.
Types of empty rates relief
There are several types of empty rates relief that property owners may be eligible for, depending on their circumstances. Some common types of empty rates relief include:
1. Small business rates relief: This relief is available to small businesses that occupy one property with a rateable value below a certain threshold. Small businesses may be eligible for a reduction or exemption from empty property rates if they meet the criteria set by the local council.
2. Charitable rate relief: Charitable organizations that occupy a property for charitable purposes may be eligible for relief from empty property rates. This relief is designed to support charities in their work by reducing the financial burden of empty property rates.
3. Hardship relief: Property owners who are experiencing financial difficulties may be eligible for hardship relief, which provides temporary relief from empty property rates. To qualify for hardship relief, property owners must demonstrate that they are facing financial hardship and are unable to pay the full amount of the rates.
Benefits of Empty Rates Relief
Empty rates relief can provide several benefits to property owners, including:
1. Financial savings: Empty rates relief can help property owners save money by reducing or eliminating the business rates payable on vacant properties. This can provide much-needed financial relief, especially during periods of economic uncertainty.
2. Incentive to bring properties back into use: By reducing the financial burden of empty property rates, empty rates relief can incentivize property owners to bring vacant properties back into productive use. This can help to revitalize vacant properties and contribute to the local economy.
3. Support for small businesses and charities: Empty rates relief provides support to small businesses and charitable organizations by reducing the cost of empty property rates. This can help small businesses and charities allocate their resources more effectively and focus on their core activities.
Overall, empty rates relief is a valuable scheme that can provide financial assistance to property owners with vacant properties. By understanding how empty rates relief works and the types of relief available, property owners can take advantage of this scheme to reduce their financial burden and support local economic development. If you own a vacant property, it is worth exploring empty rates relief options to see if you are eligible for this valuable financial assistance.