Empty rates relief, often referred to simply as “empty rates relief,” is a popular incentive offered to property owners by local authorities to alleviate the financial burden of owning empty commercial properties. This relief is designed to support property owners during periods of vacancy by providing relief on business rates, which can often be a significant cost for property owners.
In the United Kingdom, the business rates system requires property owners to pay rates on commercial properties based on their rateable value. This means that even if a property is empty and generating no income, the owner is still required to pay business rates. This can be a major financial strain for property owners, especially during times of economic downturn or when a property is difficult to lease.
Empty rates relief offers a solution to this problem by providing property owners with relief on their business rates for a set period of time. This can help to alleviate the financial burden of owning an empty property and make it more financially viable for property owners to keep their properties on the market.
There are several types of empty rates relief available to property owners, each with its own eligibility criteria and restrictions. The most common type of relief is known as the “empty property relief,” which provides property owners with a 100% relief on their business rates for a set period of time. In England and Wales, this relief is available for the first three months that a property is empty for industrial and warehouse properties, and for the first six months for all other commercial properties. After this initial period, the relief is reduced to 50% for most properties, although some properties may be eligible for full relief for an extended period.
Another type of relief is known as the “small business rate relief,” which is available to small businesses with a rateable value below a certain threshold. This relief provides property owners with a discount on their business rates, which can help to reduce the financial burden of owning an empty property.
Many local authorities also offer additional relief schemes for specific types of properties or in certain areas, so it is important for property owners to check with their local authority to see what relief options are available to them.
In order to qualify for empty rates relief, property owners must meet certain criteria set out by their local authority. Typically, property owners must demonstrate that their property is genuinely empty and that they are actively seeking to let or sell the property. Property owners may also be required to provide evidence of their efforts to market the property, such as listing it with a commercial real estate agent or advertising it on property websites.
It is important for property owners to be aware of the deadlines for applying for empty rates relief, as missing these deadlines can result in the loss of relief. Property owners should also keep detailed records of their efforts to market the property and any correspondence with their local authority regarding the relief application.
While empty rates relief can provide much-needed financial support to property owners, it is important to remember that it is only a temporary solution. Property owners should make every effort to rent or sell their property as quickly as possible to avoid incurring further costs. Additionally, property owners should consider other ways to generate income from their empty properties, such as renting out the property for temporary uses or considering redevelopment opportunities.
Overall, empty rates relief can be a valuable tool for property owners facing financial challenges due to empty properties. By taking advantage of the relief options available and actively seeking to fill their properties, property owners can minimize their financial burden and make owning empty properties more manageable.