As a business owner, one of the expenses that may occasionally weigh on your mind is that of empty property rates. When your commercial property sits vacant, you are still responsible for paying business rates, even though you are not generating any income from the property. This can be a significant financial burden, especially during times of economic uncertainty or market downturns.
However, there is a ray of hope for businesses facing empty property rates – empty rates relief. This relief scheme was introduced by the government to provide some financial assistance to businesses that have empty properties. In this article, we will explore what empty rates relief is, who is eligible for it, and how you can apply for it.
empty rates relief, also known as empty property relief or empty property rates relief, is a scheme that allows businesses to receive a discount on their business rates when their property is empty. In some cases, businesses may even qualify for a complete exemption from paying rates on their empty property.
The amount of relief you can receive and the eligibility criteria for empty rates relief vary depending on where your property is located. In England, for example, businesses are generally entitled to a 100% discount on their empty property rates for the first 3 months that the property is empty. After the initial 3-month period, the property will be liable for the full rates unless it falls into certain exempt categories.
In Scotland, on the other hand, commercial properties are eligible for a 10% discount on their empty property rates for the first 3 months, followed by a 30% discount for the next 3 months, and a 90% discount thereafter. Wales and Northern Ireland also have their own specific rules around empty rates relief, so it is important to familiarize yourself with the regulations in your area.
In order to qualify for empty rates relief, your property must meet certain criteria. Generally, properties that are undergoing major refurbishment or structural repairs are eligible for relief. Likewise, properties that are in the process of being demolished or are being held for future use or sale may also qualify for relief.
It is important to note that there are certain types of properties that do not qualify for empty rates relief. For example, properties that are listed or have historical significance, properties with a rateable value of less than £2,900, and properties that are owned by charities or community amateur sports clubs are typically not eligible for relief.
If you believe that your property meets the criteria for empty rates relief, you will need to apply for the relief through your local council. The process for applying for relief can vary depending on where your property is located, so it is best to contact your local council for specific instructions on how to apply.
In addition to empty rates relief, there are other ways that businesses can reduce the financial burden of empty property rates. For example, some businesses choose to lease their empty property to a charity or community amateur sports club in order to qualify for a 80% discount on their rates. Similarly, letting your property to a small business may also make you eligible for relief.
Overall, empty rates relief can be a valuable resource for businesses that are struggling to pay their property rates on empty properties. By understanding the eligibility criteria and applying for relief when appropriate, businesses can lessen the financial strain of empty property rates and focus on other aspects of their operations.
In conclusion, empty rates relief is a valuable resource for businesses facing the financial burden of paying rates on empty properties. By familiarizing yourself with the criteria for relief in your area and applying for relief when appropriate, you can reduce your expenses and focus on growing your business. If you have any questions about empty rates relief or need assistance with the application process, do not hesitate to contact your local council for guidance.