business rates relief on empty property, also known as empty property relief, is a topic that many business owners and property owners may not fully understand. However, it can have a significant impact on the finances of a company, especially during times when a property is vacant. In this article, we will explore what business rates relief on empty property is, how it works, and how you can take advantage of it.
Business rates are taxes that are levied on non-domestic properties in the UK. These rates are calculated based on the rateable value of a property, which is determined by the Valuation Office Agency (VOA). Property owners are required to pay business rates even if the property is vacant. However, there are certain circumstances where businesses can receive relief on their empty property rates.
Empty property rates relief is available for certain types of properties, including industrial properties, listed buildings, properties with a rateable value of less than £2,900, and properties owned by charities or community amateur sports clubs. The relief allows these property owners to receive a 100% exemption from business rates for a specified period of time.
One of the most common forms of empty property rates relief is the 3-month exemption period. This means that if a property becomes vacant, the owner will not have to pay business rates for the first three months that the property is empty. After this initial period, the owner will be required to pay the full rate unless they qualify for further relief.
In addition to the 3-month exemption period, there are other forms of relief available for empty properties. For example, if a property is undergoing major repairs or structural changes, the owner may be eligible for a 100% exemption for up to 12 months. This can provide significant financial savings for businesses that need to make improvements to their property before it can be rented out.
It’s important for property owners to be aware of the different types of relief available for empty properties and how they can qualify for them. By taking advantage of these relief options, businesses can reduce their overhead costs and minimize the financial burden of owning a vacant property.
To apply for business rates relief on an empty property, property owners must contact their local council and provide evidence of why the property is vacant. This may include documents such as building plans, photographs of the property, or copies of leases showing that the property is in the process of being re-let.
It’s also worth noting that some local councils offer discretionary rates relief for empty properties. This means that even if a property does not qualify for one of the standard relief options, the council may still offer a reduced rate or exemption on a case-by-case basis. Property owners should inquire with their local council to see if they qualify for any additional relief options.
In conclusion, business rates relief on empty property can provide much-needed financial support for businesses that are dealing with vacant properties. By understanding the different types of relief available and how to apply for them, property owners can save money on their overhead costs and alleviate some of the financial burden of owning an empty property. If you own a vacant property, be sure to explore your options for relief and take advantage of any opportunities to reduce your business rates.