empty building rate relief, also known as empty property relief, is a scheme designed to provide financial assistance to property owners who have vacant commercial buildings. This relief can help alleviate the financial burden of paying business rates on a property that is not generating any income.
Business rates are a tax that commercial property owners in the UK must pay to their local council. These rates are calculated based on the rateable value of the property and are typically paid annually. However, when a commercial property is vacant, property owners are often left in a difficult position as they are still required to pay business rates even though the property is not generating any income.
To address this issue, the government introduced empty building rate relief as a way to provide some relief to property owners who are struggling to pay business rates on vacant properties. This relief can significantly reduce the amount of business rates that property owners are required to pay on empty buildings.
The rate relief available to property owners will depend on the specific circumstances of the property and its location. In some cases, property owners may be eligible for 100% relief, meaning that they will not have to pay any business rates on the property while it remains vacant. In other cases, property owners may be eligible for a reduced rate of relief, such as a 50% reduction in the amount of business rates they are required to pay.
Property owners should be aware that empty building rate relief is not automatically granted and they will need to apply for the relief through their local council. It is important to provide the council with all necessary details about the property and its vacancy status in order to be considered for relief.
There are certain criteria that property owners must meet in order to be eligible for empty building rate relief. These criteria typically include:
– The property must be completely vacant and not in use for any purpose
– The property must be capable of being used for commercial purposes
– The property must be actively being marketed for sale or rent
Property owners should keep in mind that empty building rate relief is only available for a limited period of time. In most cases, the relief is granted for a maximum of three months for industrial properties and six months for retail and office properties. After this initial period, the relief may be extended for a further three months for industrial properties and three months for retail and office properties, but property owners must reapply for the relief.
It is important for property owners to carefully consider their options when it comes to vacant properties and empty building rate relief. While the relief can provide some financial assistance, property owners should also explore other avenues for generating income from their vacant properties, such as renting the property out or selling it.
In some cases, property owners may also be able to take advantage of other forms of relief or support to help with the costs of maintaining and managing their vacant properties. For example, the government offers small business rate relief for properties with a rateable value below a certain threshold, which can help reduce the amount of business rates owed on the property.
Overall, empty building rate relief can provide much-needed financial assistance to property owners who are struggling to pay business rates on vacant properties. By understanding the criteria for relief and actively applying for it through their local council, property owners can take advantage of this scheme to help alleviate the financial burden of owning empty commercial buildings.