When it comes to owning commercial property, one of the biggest expenses that business owners face is business rates. These rates are charged on most non-domestic properties, including offices, shops, and warehouses. However, not all properties are in use all the time, and many commercial property owners find themselves paying business rates on empty properties. To ease the financial burden on businesses during these times, the government offers business rates relief on empty property.
business rates relief on empty property is a scheme introduced by the government to provide financial support to businesses that own empty non-domestic properties. The relief is aimed at easing the burden of business rates on property owners who may be struggling to find tenants or buyers for their empty properties.
There are different types of business rates relief available for empty properties, each with its own eligibility criteria and conditions. The most common types of relief include:
1. Empty property rate relief: This relief is available for all non-domestic properties that have been empty for a certain period. In most cases, properties are eligible for a 100% relief for the first three months they are empty, followed by a 50% relief for the next three months. After the initial six-month period, the property owner will be liable to pay the full business rates unless they qualify for another form of relief.
2. Charitable or community interest company (CIC) property relief: Properties that are owned by registered charities or CICs are eligible for 80% relief on their business rates if the property is held for charitable purposes. This relief provides a significant financial benefit to organizations that rely on donations and funding to carry out their charitable work.
3. Mandatory relief for certain properties: Some types of properties are eligible for mandatory relief on their business rates, regardless of their occupancy status. These properties include agricultural land and buildings, fish farms, places of worship, and properties used for the training or welfare of disabled people. The relief amount varies depending on the specific property type and its use.
4. Discretionary relief: Local councils have the authority to provide discretionary relief on business rates for empty properties in exceptional circumstances. This relief is usually granted on a case-by-case basis and may involve a partial reduction or exemption from business rates for a limited period.
It is important for property owners to be aware of the different types of business rates relief available for empty properties and to understand the eligibility criteria for each relief scheme. By taking advantage of these relief options, businesses can reduce their financial burden and potentially save thousands of pounds on business rates.
To apply for business rates relief on empty property, property owners must contact their local council and provide the necessary documentation to support their application. This may include evidence of the property’s occupancy status, ownership details, and details of any previous relief received.
In addition to providing relief for empty properties, the government has also introduced other measures to support businesses during periods of economic uncertainty. For example, during the COVID-19 pandemic, the government implemented a business rates holiday for eligible businesses in the retail, hospitality, and leisure sectors. This holiday provided a much-needed lifeline for businesses that were forced to close their doors due to lockdown restrictions.
Overall, business rates relief on empty property is a valuable tool for property owners to reduce their financial burden and support their businesses during challenging times. By understanding the different types of relief available and meeting the eligibility criteria, property owners can take advantage of these schemes to save money and keep their businesses afloat. Contact your local council today to find out more about business rates relief options for empty properties and how you can apply.