For property owners, one of the most frustrating expenses to deal with is empty rates. When a property sits vacant, owners are still required to pay business rates on the property, even if it is not generating any income. This can be a significant financial burden, especially during times of economic uncertainty or downturn. However, there is a solution that many property owners may not be aware of – empty rates relief.
empty rates relief is a scheme introduced by the UK government to provide financial assistance to property owners who are struggling to pay business rates on empty properties. The relief is intended to help property owners keep their buildings in good condition and ready for occupation, rather than abandoning them or allowing them to fall into disrepair.
There are several types of empty rates relief available, each designed to provide financial assistance to property owners in different circumstances. The most common forms of empty rates relief include:
1. Small business rates relief: This relief is available to small businesses that occupy a single property with a rateable value of £12,000 or less. Eligible businesses can receive 100% relief on their business rates for properties that have been empty for three months or more.
2. Charitable rates relief: Charities and community amateur sports clubs are eligible for 80% relief on their business rates for properties that have been empty for three months or more. This relief is intended to help charitable organizations continue their work in the community, even when their properties are not in use.
3. Industrial and warehouse relief: Industrial and warehouse properties that have been empty for six months or more are eligible for a 100% relief on their business rates. This is intended to encourage property owners to keep their industrial buildings in good condition and ready for occupation.
4. Listed buildings relief: Grade I and Grade II* listed buildings that have been empty for two years or more are eligible for 100% relief on their business rates. This is to help preserve historic buildings and prevent them from falling into disrepair.
5. Exempt buildings relief: Certain types of buildings, such as agricultural buildings, fish farms, and lighthouses, are exempt from business rates altogether, even if they are empty. This is to recognize the unique nature of these buildings and the challenges they face in generating income.
To apply for empty rates relief, property owners must contact their local council and provide evidence that their property meets the criteria for relief. This may include providing proof of the property’s rateable value, its occupancy status, and its eligibility for specific types of relief. It is important to note that empty rates relief is not automatic and must be applied for separately from regular business rates relief.
empty rates relief can provide much-needed financial assistance to property owners who are struggling to pay business rates on empty properties. By taking advantage of the relief schemes available, property owners can reduce the financial burden of keeping their buildings in good condition and ready for occupation. This can help to prevent properties from falling into disrepair and becoming vacant for extended periods of time.
In conclusion, empty rates relief is a valuable resource for property owners who are facing financial difficulties due to vacant properties. By understanding the different types of relief available and applying for the appropriate relief for their specific circumstances, property owners can alleviate the financial burden of empty rates and keep their buildings in good condition. This not only benefits property owners but also helps to preserve valuable buildings and prevent them from becoming eyesores in the community. If you are a property owner struggling with empty rates, be sure to explore the empty rates relief options available to you and take advantage of this valuable resource.