Empty rates relief, or simply relief from business rates on empty commercial properties, is a topic that often confuses property owners. In the UK, business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, when a property becomes empty, the owner may be eligible for relief on these rates. Understanding how empty rates relief works and what you need to do to qualify is crucial for property owners looking to save on costs during periods of vacancy.
The Basics of empty rates relief
When a commercial property becomes empty, the owner is still liable to pay business rates unless they qualify for empty rates relief. The rate at which relief is granted varies depending on the type of property and the length of time it has been vacant.
Currently, most commercial properties are eligible for 100% relief on business rates for the first three months that they are empty. After this initial period, the owner is usually required to pay the full rate. However, in certain circumstances, further relief may be available.
Extended empty rates relief
In some cases, property owners may be able to apply for extended empty rates relief beyond the initial three months. This is usually granted if the property meets certain criteria, such as being in an area with high vacancy rates or undergoing substantial renovations. To apply for extended relief, owners must provide evidence to the local council demonstrating that the property is actively being marketed for rent or sale.
It is important to note that extended empty rates relief is not automatic and must be applied for separately from the initial relief. Failure to do so may result in the property owner being liable for the full business rates even if the property remains vacant.
How to Apply for empty rates relief
To apply for empty rates relief, property owners must contact their local council and provide relevant information about the property, including the date it became vacant and the reasons for its vacancy. Owners may also be required to submit evidence such as marketing materials or renovation plans to support their application.
It is advisable to keep detailed records of all communication with the council regarding empty rates relief to ensure that any decisions can be easily traced back. Property owners should also make note of any deadlines or requirements specified by the council to avoid missing out on relief.
Potential Pitfalls to Avoid
While empty rates relief can provide much-needed financial relief to property owners, there are potential pitfalls to be aware of. One common mistake is assuming that the relief will be granted automatically once a property becomes vacant. As mentioned earlier, owners must actively apply for relief and provide evidence to support their application.
Another common issue is failing to keep the council informed of any changes in the property’s status. If a property is no longer vacant or is being used for a different purpose, owners must notify the council immediately to avoid being charged the full rate.
In addition, property owners should be aware that relief is not available for properties that are exempt from business rates. For example, certain types of agricultural land or buildings used for charitable purposes may not be eligible for empty rates relief.
Conclusion
Empty rates relief can be a valuable resource for property owners facing vacancies in their commercial properties. By understanding how the relief works, knowing how to apply, and avoiding common pitfalls, owners can take advantage of this opportunity to save on business rates during periods of vacancy. It is essential to stay informed about the eligibility criteria and requirements for empty rates relief in order to make the most of this benefit. Property owners should consult with their local council or seek professional advice if they have any questions or concerns about empty rates relief.