commercial property empty rates relief, also known as vacant property relief, is a tax relief scheme that aims to support property owners who are facing financial struggles due to empty commercial properties. In the United Kingdom, business rates are charged on most non-domestic properties, including shops, offices, and warehouses. However, when a property becomes empty, owners are still liable to pay business rates unless they qualify for empty rates relief.
Empty rates relief was introduced to prevent property owners from being penalized for vacant properties and to incentivize them to bring the property back into productive use. The relief is provided to help businesses during difficult times, such as economic downturns or when properties are undergoing renovations.
There are several types of empty rates relief available to commercial property owners. The first type is known as the Small Business Rates Relief, which applies to commercial properties with a rateable value below a certain threshold. This relief provides a 100% exemption from business rates for properties with a rateable value of up to £12,000. Properties with a rateable value between £12,001 and £15,000 are eligible for tapered relief.
Another type of empty rates relief is the Hardship Relief, which is available to property owners facing financial hardship due to empty properties. This relief is granted at the discretion of the local council and can provide up to 50% relief on business rates for a limited period.
The Government also introduced a temporary measure known as the Retail, Hospitality, and Leisure Relief in response to the COVID-19 pandemic. This relief provides a 100% exemption from business rates for retail, hospitality, and leisure properties for the 2020/21 and 2021/22 tax years.
In addition to these specific types of empty rates relief, there are also general exemptions that apply to certain types of properties. For example, properties that are undergoing renovation or structural repairs may qualify for a 100% exemption from business rates for up to 3 months. Properties that are owned by charities or community amateur sports clubs can also qualify for relief.
It is important for property owners to be aware of the eligibility criteria for empty rates relief and to apply for relief as soon as possible to avoid unnecessary costs. The process of applying for empty rates relief varies depending on the type of relief being claimed and the local council’s procedures. Property owners should consult with their local council or a professional advisor to ensure that they are eligible for relief and to complete the application process correctly.
Commercial property owners should also be aware of the implications of non-payment of business rates on empty properties. Failure to pay business rates on a vacant property can result in legal action being taken by the local council, including court proceedings and the possibility of the property being seized. It is important for property owners to stay informed about their obligations and to take advantage of empty rates relief wherever possible to avoid facing financial difficulties.
In conclusion, commercial property empty rates relief is a valuable scheme that provides financial support to property owners during challenging times. Property owners should take advantage of the various types of relief available to them and ensure that they are aware of the eligibility criteria and application process. By applying for empty rates relief, property owners can alleviate some of the financial burdens associated with owning vacant commercial properties and focus on bringing their properties back into productive use.