Business rates are a tax that the owners or occupiers of non-domestic properties are required to pay to local authorities. These rates are based on the rental value of the property and are paid annually. However, when a property is vacant, the burden of paying business rates can be a significant financial strain on the owner. In order to alleviate this burden, the government offers business rate relief for empty property.
Empty property business rate relief is a scheme designed to reduce the amount of business rates that owners of empty properties are required to pay. The relief is provided to encourage property owners to bring empty buildings back into use, thereby stimulating economic growth and revitalizing local communities. There are different types of relief available for empty properties, each with its own eligibility criteria and benefits.
One of the most common forms of empty property business rate relief is the 100% exemption for newly built properties. This exemption applies to newly constructed properties that have not been occupied since they were built. The purpose of this relief is to incentivize property developers to invest in new construction projects without having to worry about paying business rates on unoccupied buildings.
Another form of empty property rate relief is the three-month exemption for newly refurbished properties. This relief applies to properties that have undergone major refurbishments or renovations and have been empty for a period of at least three months. The exemption is intended to give property owners a grace period to find new tenants or buyers for the newly refurbished space.
In addition to these exemptions, there are also other forms of empty property business rate relief available for properties that have been empty for an extended period of time. For example, properties that have been empty for more than three months may qualify for a 50% discount on their business rates. This discount is designed to provide some financial relief to property owners who are struggling to find occupants for their empty buildings.
Property owners may also be eligible for relief if they can prove that their property is genuinely on the market for rent or sale. In these cases, the property owner may be granted an exemption from paying business rates for a period of up to 12 months, with the possibility of extending the exemption for an additional 12 months in certain circumstances. This relief is aimed at encouraging property owners to actively market their empty properties and find new occupants as soon as possible.
It is important for property owners to be aware of the various forms of empty property business rate relief available to them, as well as the eligibility criteria for each type of relief. In order to qualify for relief, property owners may be required to provide evidence of their efforts to market the property, such as advertising in local newspapers or listing the property on commercial real estate websites. Property owners should also be prepared to provide documentation demonstrating the reasons for the property being vacant, such as evidence of renovation works or difficulties in finding suitable tenants.
In conclusion, empty property business rate relief is a valuable tool for property owners who are struggling to find occupants for their empty buildings. The relief is designed to provide financial assistance to property owners and encourage investment in new construction projects and renovations. By taking advantage of the various forms of relief available, property owners can minimize their financial burden and contribute to the revitalization of their local communities.