If you own or manage commercial properties, you may already be familiar with the term “empty rates relief.” This concept, also known simply as “empty rates,” refers to the business rates that are payable on empty commercial properties. However, there are certain circumstances in which property owners can qualify for relief or even exemption from paying these rates. In this article, we will delve into the intricacies of empty rates relief and provide you with the essential information you need to navigate this aspect of property ownership.
empty rates relief is a term used to describe the relief or exemption that property owners can apply for in order to reduce or eliminate the business rates payable on vacant commercial properties. Vacant properties are generally subject to business rates just like occupied properties, and the rates are payable by the owner or leaseholder of the property. This can be a significant financial burden for property owners, especially when they are struggling to find a new tenant or buyer for the property.
There are several types of empty rates relief that property owners may be eligible for, depending on their individual circumstances. The most common forms of relief include:
1. Small business rate relief: This relief is available to businesses that only occupy one property with a rateable value below a certain threshold. If the property becomes vacant, the owner may still be eligible for small business rate relief for a limited period of time.
2. Charitable rate relief: Charities and community amateur sports clubs are entitled to 80% relief on business rates for properties that are used for charitable purposes. If the property becomes vacant, the charity may still be eligible for this relief for a specified period.
3. Industrial and agricultural rate relief: Properties that are used for industrial or agricultural purposes may be eligible for relief on their business rates, even if they become vacant. The amount of relief varies depending on the specific circumstances of the property.
4. Empty property relief: This is the most common form of relief for vacant commercial properties. Property owners may be eligible for a 100% exemption on business rates for a specified period of time, usually the first three months after the property becomes vacant. After this initial period, the property may still be eligible for a 50% discount on the business rates.
In order to qualify for empty rates relief, property owners must meet certain criteria set out by the local council or the Valuation Office Agency (VOA). These criteria may include proving that the property is genuinely vacant, demonstrating that efforts have been made to actively market the property for rent or sale, and providing evidence of any structural repairs or renovations that are being carried out on the property.
It is important for property owners to understand that empty rates relief is not automatically granted and that they may need to submit an application to their local council or the VOA in order to be considered for relief. The process can be complex and time-consuming, so it is advisable to seek professional advice from a qualified surveyor or property consultant who can help navigate the application process and ensure that all necessary documentation is in order.
In some cases, property owners may also be able to appeal against a decision to deny them empty rates relief. This may involve providing additional evidence or information to support their case, or challenging the decision through the formal appeals process. Again, seeking professional advice can be instrumental in mounting a successful appeal and securing the relief that the property owner is entitled to.
Overall, empty rates relief can provide much-needed financial assistance to property owners who are struggling to cope with the burden of business rates on vacant properties. By understanding the different types of relief available and the eligibility criteria that must be met, property owners can take proactive steps to mitigate the impact of empty rates on their finances and ensure that they are compliant with their legal obligations. With the right guidance and support, navigating empty rates relief can be made significantly easier, allowing property owners to focus on finding new tenants or buyers for their vacant properties while minimizing the financial strain of business rates.