For property owners in the United Kingdom, dealing with vacant properties can be a significant financial burden. Not only are they left without rental income, but they may also be faced with hefty business rates bills for properties that are not generating any revenue. In an effort to alleviate some of this financial strain, the government has introduced a scheme known as empty rates relief.
empty rates relief, also referred to as empty property rate relief, is a concession provided to property owners who have empty properties. The relief is designed to reduce or even eliminate the business rates that must be paid on empty properties, offering some financial relief to property owners during periods of vacancy.
The key purpose of empty rates relief is to incentivize property owners to keep their vacant properties in good condition and available for occupation, rather than leaving them neglected or at risk of becoming derelict. By providing relief on business rates, the government aims to encourage property owners to actively market their empty properties and bring them back into use as quickly as possible.
There are several types of empty rates relief available to property owners, each with its own set of criteria and eligibility requirements. The most common forms of relief include:
1. Small business rates relief: This relief is available to small businesses with a rateable value below a certain threshold. It provides a 100% discount on business rates for properties with a rateable value of £12,000 or less, and a tapered relief for properties with a rateable value between £12,001 and £15,000.
2. Charitable rates relief: Charities and community amateur sports clubs are eligible for 80% mandatory relief on business rates for the majority of non-domestic properties that are wholly or mainly used for charitable purposes. Some charities may also qualify for additional discretionary relief.
3. Mandatory relief for industrial and warehouse properties: Industrial and warehouse properties that have been empty for at least 6 months are eligible for 100% relief on business rates for the first three months of vacancy, followed by a 10% discount for the remaining period of vacancy.
4. Exemption for listed buildings: Listed buildings that are empty and are undergoing or require structural repairs are exempt from paying business rates for as long as they remain unoccupied.
In addition to these forms of relief, property owners may also be able to apply for discretionary relief in certain circumstances. Local authorities have the discretion to grant relief on empty properties that do not meet the criteria for the above-mentioned schemes, but are deemed to have a significant economic or social benefit to the local area.
It is important for property owners to be aware of the available options for empty rates relief and to take advantage of them where possible. Failing to claim relief on vacant properties can result in significant financial losses, especially for property owners with multiple empty properties or properties with high rateable values.
Property owners should also keep in mind that empty rates relief is not automatic and must be applied for through the local council. Applications will typically require supporting documentation, such as evidence of the property’s vacancy, to verify eligibility for relief.
In conclusion, empty rates relief is a valuable concession for property owners in the UK who are faced with vacant properties. By providing relief on business rates, the government aims to incentivize property owners to actively market their empty properties and bring them back into use as quickly as possible. Property owners should familiarize themselves with the available forms of relief and ensure they apply for it when applicable to avoid unnecessary financial burdens.