Property owners who find themselves with vacant commercial or industrial properties may be subject to paying empty rates, also known as business rates on empty properties. However, there are exemptions and relief schemes available to help property owners avoid these costs. In this article, we will discuss the empty rates exemption and how property owners can benefit from it.
Empty rates are a tax that must be paid on commercial properties that are empty for an extended period of time. The rates are charged by local authorities and can be a significant financial burden for property owners. In some cases, property owners may be exempt from paying empty rates, either temporarily or permanently, depending on certain criteria.
One common exemption is known as the “empty rates exemption.” This exemption applies to properties that are empty for a short period of time, usually for up to three months. Property owners do not have to pay empty rates during this period, allowing them some time to find new tenants or make necessary repairs to the property. This exemption is designed to provide temporary relief to property owners who are actively working to fill their vacant properties.
In addition to the empty rates exemption, there are other relief schemes available to property owners facing empty rates. One such relief scheme is the Small Business Rates Relief (SBRR) scheme, which provides relief to small businesses that occupy properties with a rateable value below a certain threshold. This scheme can help reduce the financial burden of paying empty rates on small business owners who are struggling to keep their properties occupied.
Another relief scheme is the Retail Rates Relief, which provides relief to properties that are used for retail purposes. This scheme is aimed at supporting high street businesses and encouraging the use of commercial properties for retail purposes. Property owners who qualify for this relief scheme may be eligible for a reduction in their empty rates bill, potentially saving them thousands of pounds.
It is important for property owners to be aware of the various relief schemes and exemptions available to them when faced with empty rates. By taking advantage of these schemes, property owners can reduce their financial burden and make it easier to keep their properties occupied. However, it is important to note that each relief scheme has its own criteria and eligibility requirements, so property owners should carefully review the details of each scheme to determine if they qualify.
In some cases, property owners may also be eligible for temporary rate relief if they are carrying out repairs or renovations to their property. This relief is known as the “unoccupied property renovation relief” and can provide property owners with a discount on their empty rates bill while they are actively working to improve their property. This can be especially helpful for property owners who are investing in their properties and need time to complete renovations before finding new tenants.
Overall, empty rates can be a significant financial burden for property owners, especially those with vacant commercial or industrial properties. However, there are relief schemes and exemptions available to help property owners reduce their empty rates bill and avoid unnecessary costs. By understanding the empty rates exemption and other relief schemes, property owners can take advantage of these opportunities to alleviate their financial burden and keep their properties occupied.