empty rates relief, also known as vacant property relief or empty property rates relief, is a scheme set up by the government to provide tax breaks to property owners who have vacant commercial or industrial buildings. These relief measures have been put in place to encourage property owners to bring empty properties back into use, thus revitalizing local economies and helping reduce the number of abandoned buildings across the country.
In the UK, business rates are a tax that all commercial property owners must pay to the local government. However, if a property is left vacant for an extended period of time, the owner may be eligible for empty rates relief. This relief can provide significant savings for property owners and can help offset the costs of maintaining a vacant property.
There are several types of empty rates relief available to property owners, each with its own eligibility criteria and level of relief. The most common types of relief include:
1. Small business rate relief: This relief is available to small businesses that operate from a single property with a rateable value of £12,000 or less. If the property becomes vacant, the owner may be eligible for 100% relief for up to three months, and then 50% relief for a further three months.
2. Charitable rate relief: This relief is available to charities that use a property for charitable purposes. Charities can apply for an 80% discount on business rates for any property they own that is used for charitable activities.
3. Industrial property relief: Industrial properties that are vacant may be eligible for a 100% relief on business rates for up to six months. After this initial period, the relief amount may be reduced depending on the local government’s policy.
4. Listed building relief: Listed buildings that are vacant may be eligible for a 100% relief on business rates for as long as the property remains empty. This is to encourage property owners to maintain and preserve historic buildings.
5. Hardship relief: Property owners who are experiencing financial hardship and are struggling to pay business rates on a vacant property may be eligible for hardship relief. This relief is granted on a case-by-case basis and is intended to provide temporary financial assistance to struggling property owners.
It is important for property owners to be aware of the various types of empty rates relief available to them and to determine their eligibility for each type of relief. By taking advantage of these relief measures, property owners can save money on business rates and help contribute to the revitalization of their local communities.
In addition to the financial benefits of empty rates relief, there are also other advantages to bringing vacant properties back into use. Vacant properties can attract vandalism, squatting, and other criminal activities, which can have a negative impact on the surrounding area. By filling empty properties with new businesses or tenants, property owners can help create a more vibrant and thriving community.
Furthermore, bringing vacant properties back into use can also help to increase property values in the area. Abandoned buildings can lower property values and create a negative impression of the neighborhood. By revitalizing these empty properties, property owners can help improve the overall attractiveness of the area and attract new tenants and businesses.
Overall, empty rates relief is a valuable tool that property owners can use to reduce their tax burden and contribute to the economic growth of their local community. By taking advantage of the various relief measures available, property owners can save money on business rates, preserve historic buildings, and help improve the overall quality of their neighborhood. If you are a property owner with a vacant commercial or industrial building, be sure to explore the empty rates relief options available to you and see how you can benefit from these valuable tax breaks.