Empty property rate relief, commonly known as “empty property rate relief,” is a term that refers to the reduction or exemption of business rates for property owners who have vacant properties. Many property owners are not aware of this relief and end up paying large sums of money in business rates for properties that are not generating any income. In this article, we will delve into the specifics of empty property rate relief and explain how property owners can benefit from it.
Business rates are taxes that are levied on non-domestic properties in the UK. These rates are calculated based on the rateable value of the property and are payable by the owner or leaseholder. However, when a property is empty, it is no longer generating any income, and hence, property owners may be entitled to relief on their business rates.
There are several types of empty property rate relief available to property owners. The most common type of relief is a 100% exemption, which means that property owners do not have to pay any business rates on their empty properties for a certain period of time. This period varies depending on the type of property and its location, but it is usually around three or six months.
In addition to the 100% exemption, property owners may also be eligible for a 50% discount on their business rates for a further period of time after the initial exemption period has ended. This means that property owners would only have to pay half of the usual business rates on their empty properties.
There are certain conditions that property owners must meet in order to qualify for empty property rate relief. For example, the property must be genuinely empty and not being used for any purpose, such as storage or as a temporary office. Property owners must also provide evidence to the local council to prove that the property is empty and that they are actively trying to find a tenant or buyer.
It is important for property owners to be aware of the empty property rate relief available to them and to take advantage of it. Paying business rates on an empty property can be a significant financial burden, especially if the property has been vacant for a long period of time. By claiming empty property rate relief, property owners can save money and alleviate some of the financial pressures of owning a vacant property.
In order to claim empty property rate relief, property owners should contact their local council and request an application form. The council will review the application and may require additional information or documentation to support the claim. Once the claim has been approved, the council will apply the appropriate relief to the property owner’s business rates account.
It is worth noting that empty property rate relief is not automatically granted to property owners. It is the responsibility of the property owner to apply for the relief and provide the necessary information to support their claim. Failure to do so may result in the property owner being liable for the full amount of business rates on their empty property.
In conclusion, empty property rate relief is a valuable benefit for property owners with vacant properties. By claiming this relief, property owners can save money on their business rates and alleviate some of the financial pressures associated with owning an empty property. Property owners should familiarize themselves with the conditions and requirements for empty property rate relief and take advantage of this opportunity to reduce their financial burden.