empty rates relief, often known as empty property relief, is a policy put in place by the government to provide relief on business rates for properties that are vacant. This relief is designed to alleviate the financial burden on property owners who are not able to generate income from their unused premises. In this article, we will delve into the details of empty rates relief and how it can benefit property owners.
empty rates relief is a scheme that can provide significant savings for property owners who are faced with vacant properties. Under normal circumstances, property owners are required to pay business rates on their premises whether they are occupied or not. This can become a substantial expense for owners who are unable to find tenants for their properties or are in the process of refurbishing or redeveloping their premises.
The purpose of empty rates relief is to provide a temporary reprieve for property owners during periods of vacancy. The relief can be granted for a specific period of time, ranging from 3 months to 2 years, depending on the circumstances of the vacancy. This can result in significant savings for property owners, allowing them to alleviate some of the financial strain of owning a vacant property.
There are several conditions that must be met in order to qualify for empty rates relief. The property must be completely unoccupied, meaning that it cannot be used for any purpose, including storage or office space. Additionally, the property must have been vacant for a certain period of time before relief can be granted. This period usually ranges from 3 to 6 months, depending on the local authority’s policies.
It is important for property owners to be aware of the eligibility criteria for empty rates relief in their area in order to take advantage of this benefit. Failure to meet the conditions set out by the local authority can result in the property owner being liable for the full amount of business rates, even if the property remains vacant.
It is also worth noting that empty rates relief is not automatically granted to property owners. In most cases, owners will need to apply for the relief and provide evidence of the property’s vacancy status. This can include documentation such as lease agreements, property inspections, and evidence of marketing efforts to find new tenants.
Property owners should also be aware of the potential consequences of not applying for empty rates relief when their property is vacant. Failure to apply for relief can result in hefty business rates bills that can add to the financial strain of owning a vacant property. By taking advantage of empty rates relief, property owners can significantly reduce their business rates liability and ease the financial burden of vacancy.
Property owners should also be aware of the changes to empty rates relief that were introduced in April 2017. The government implemented new regulations that limit the amount of relief that can be granted on vacant properties. Under these new rules, properties that have been vacant for more than 3 months are subject to an increased rate of business rates, known as the empty property rate.
Despite these changes, empty rates relief remains an important benefit for property owners facing vacancy. By understanding the eligibility criteria and the application process, property owners can take advantage of this relief and reduce their business rates liability during periods of vacancy.
In conclusion, empty rates relief is a valuable benefit for property owners who are faced with vacant properties. By meeting the eligibility criteria and applying for relief, property owners can significantly reduce their business rates liability and ease the financial burden of vacancy. It is important for property owners to be aware of the conditions and requirements for empty rates relief in their area in order to take advantage of this benefit.