Empty rates relief, also known as empty property relief, is a tax relief scheme that applies to commercial or business properties that are vacant for a certain period of time. The aim of this relief is to provide some financial support to property owners who may be struggling to find tenants or buyers for their empty properties. Understanding how empty rates relief works and who is eligible for it can help property owners navigate the complexities of the tax system and potentially save money on their business rates.
The Basics of empty rates relief
Empty rates relief is provided by the government to property owners who are dealing with vacant commercial or business properties. When a property becomes empty, the owner is still required to pay business rates on it unless they qualify for empty rates relief. The relief allows property owners to claim a reduction in their business rates bill for a specified period of time while the property remains unoccupied.
The exact amount of relief and the duration for which it is available can vary depending on the location and type of property. In England, for example, empty rates relief is granted for the first three months that a property is empty. After that, the owner must pay the full business rates bill unless the property qualifies for additional relief schemes.
Who is Eligible for empty rates relief?
Not all vacant properties are eligible for empty rates relief. To qualify for the relief, a property must meet certain criteria set out by the local government. In general, properties that are exempt from empty rates relief include:
– Properties that are exempt from business rates altogether, such as farm buildings or fish farms.
– Properties owned by charities and used for charitable purposes.
– Properties with a rateable value of less than £2,900.
If a property does not fall into one of these categories, the owner may be eligible for empty rates relief. It is important to check with the local council to determine whether a property qualifies for relief and to understand the specific requirements that must be met to receive it.
How to Apply for empty rates relief
To apply for empty rates relief, property owners must contact their local council and provide evidence of the vacancy of the property. This may include a lease agreement showing that the property is vacant, photographs of the empty property, or any other documentation that proves the property is not being used.
Once the council has received the application, they will assess whether the property meets the criteria for empty rates relief and determine the amount of relief that will be granted. Property owners should be prepared to provide any additional information requested by the council to support their application.
It is important to note that empty rates relief is not automatically granted and must be applied for by the property owner. Failing to apply for relief could result in the owner having to pay the full business rates bill for the empty property.
Other Relief Schemes
In addition to empty rates relief, there are other relief schemes that may be available to property owners to help reduce their business rates bill. These include:
– Small business rates relief, which provides a discount on business rates for properties with a rateable value below a certain threshold.
– Retail relief, which provides a discount on business rates for properties that are used as shops, restaurants, cafes, or other retail businesses.
Property owners should explore all available relief schemes to identify any potential savings on their business rates bill. Working with a professional tax advisor or accountant can also help property owners navigate the complexities of the tax system and ensure they are not missing out on any available relief opportunities.
In conclusion, empty rates relief can provide valuable financial support to property owners who are dealing with vacant commercial or business properties. Understanding the criteria for relief, how to apply for it, and other relief schemes that may be available can help property owners navigate the tax system and potentially save money on their business rates bill. By taking advantage of empty rates relief and other relief schemes, property owners can reduce the financial burden of owning empty properties and focus on finding tenants or buyers to put their properties back into use.