empty premises rates relief, also known as empty property relief or vacant property relief, is a benefit available to property owners who have vacant or unused premises. This relief provides a temporary exemption from paying business rates on properties that are empty for a certain period of time.
Business rates are a tax on non-domestic properties in the UK, similar to council tax for residential properties. They are calculated based on the rateable value of a property and are used to fund local services such as schools, roads, and waste collection. However, when a property becomes empty, business rates still need to be paid unless the owner is eligible for empty premises rates relief.
The main purpose of empty premises rates relief is to support property owners during periods of vacancy or structural works. By providing relief on business rates, the government aims to encourage the occupation and development of empty properties, ultimately benefiting the local economy and community.
Who is eligible for empty premises rates relief?
empty premises rates relief is available to most property owners who have vacant or unused commercial properties. However, there are certain criteria that need to be met in order to qualify for this relief. Here are some key points to consider:
1. Duration of vacancy: In most cases, empty premises rates relief is granted for a maximum period of three months for industrial properties and six months for all other commercial properties. After this initial period, the property owner may still be eligible for relief, but it is usually granted at a reduced rate.
2. Property conditions: The property must be genuinely empty and not in use for business purposes in order to qualify for empty premises rates relief. This means that any storage or occasional use of the property does not disqualify the owner from claiming relief.
3. Structural works: If the property is undergoing major structural repairs or renovations, the owner may be eligible for an extended period of empty premises rates relief. This is to account for the time needed to carry out the necessary works and bring the property back into use.
4. Charitable status: Charities and community amateur sports clubs are entitled to 80% relief on empty properties that are held for charitable purposes. This can provide significant savings for these organizations and support their valuable work in the community.
How does empty premises rates relief work?
Once a property owner meets the eligibility criteria for empty premises rates relief, they can apply for this benefit through their local council. The council will assess the application and determine the length and extent of relief that can be granted based on the circumstances of the property.
If the application is approved, the property owner will receive a discount on their business rates bill for the specified period of vacancy. This discount can range from 100% relief for the first three or six months to a reduced rate thereafter, depending on the type of property and the reason for vacancy.
It is important for property owners to keep the council informed about any changes in the property’s status during the period of empty premises rates relief. For example, if the property is reoccupied or put to use for business purposes, the relief may be revoked, and the owner will be required to pay the full amount of business rates.
Benefits of empty premises rates relief
empty premises rates relief offers several benefits to property owners and the wider community. Some of the key advantages include:
1. Financial support: By providing relief on business rates, empty premises rates relief gives property owners financial assistance during periods of vacancy or structural works. This can help to alleviate the financial burden of owning a vacant property and encourage investment in revitalizing unused spaces.
2. Economic stimulus: Encouraging the occupation of empty properties through rates relief can boost local economies by creating new business opportunities and attracting tenants to vacant premises. This can contribute to the regeneration of areas that have been blighted by empty or derelict buildings.
3. Social impact: Bringing empty properties back into use can have positive social impacts, such as revitalizing neighborhoods, providing spaces for community activities, and supporting local businesses. Empty premises rates relief plays a role in facilitating this process and promoting a vibrant and sustainable built environment.
In conclusion, empty premises rates relief is a valuable benefit that supports property owners during periods of vacancy and structural works. By providing relief on business rates, this scheme encourages the occupation and development of empty properties, ultimately benefiting both property owners and the wider community. Understanding the eligibility criteria and application process for empty premises rates relief is essential for property owners seeking to take advantage of this valuable assistance.