Making Sense Of Empty Rates Relief: A Guide For Commercial Property Owners

Empty rates relief, also known as “unoccupied property relief” or “vacant property relief,” is a scheme put in place by the government to help commercial property owners alleviate the financial burden of paying business rates on empty properties. Business rates are a tax imposed on non-domestic properties, and they are a significant expense that property owners have to deal with. However, when a property is unoccupied, the problem of having to pay these rates can become even more burdensome. This is where empty rates relief comes in – offering property owners some respite during times when their properties are empty.

Understanding empty rates relief

The concept of empty rates relief can be confusing to many property owners, as the rules and regulations surrounding it can be quite complex. In simple terms, empty rates relief allows property owners to claim a reduction in the amount of business rates they have to pay on empty commercial properties. The relief can vary depending on the specific circumstances of the property, such as its rateable value and the length of time it has been empty.

It is important to note that empty rates relief is not automatic, and property owners have to apply for it through their local council. The eligibility criteria for claiming empty rates relief can differ between different local authorities, so property owners should check with their respective council to see if they qualify for the relief.

Types of empty rates relief

There are different types of empty rates relief that property owners can apply for, depending on the circumstances of their properties. Some common types of empty rates relief include the following:

1. Exempt properties – Certain types of properties are exempt from paying business rates altogether, even when they are empty. This includes properties such as agricultural land and buildings, listed buildings, and properties owned by charities.

2. Empty properties relief – This type of relief applies to most other types of commercial properties that are empty, and it provides a temporary reduction in the amount of business rates that the property owner has to pay. The amount of relief and the length of time it is granted for can vary depending on the rules set by the local council.

3. Industrial and warehouse property relief – Some local authorities offer additional relief for properties that are classified as industrial or warehouse buildings. This can provide further reductions in business rates for property owners in these sectors.

Benefits of empty rates relief

Empty rates relief can offer several benefits to commercial property owners who are struggling with the financial burden of paying business rates on empty properties. Some of the key benefits include:

1. Financial relief – By reducing the amount of business rates that property owners have to pay on empty properties, empty rates relief can help alleviate some of the financial pressure that comes with owning vacant commercial properties.

2. Incentive to bring properties back into use – Empty rates relief can provide property owners with an incentive to bring their empty properties back into productive use, either by finding tenants or repurposing the properties for other uses. This can help improve the overall economic viability of the area and reduce the number of vacant properties in the area.

3. Support for businesses during difficult times – During economic downturns or periods of uncertainty, many businesses may struggle to find tenants for their commercial properties. Empty rates relief can provide these businesses with the support they need to weather the storm and avoid being burdened with excessive business rates on their empty properties.

Overall, empty rates relief can be a valuable resource for commercial property owners who are facing the challenge of paying business rates on empty properties. By understanding the different types of relief available and ensuring that they meet the eligibility criteria set by their local council, property owners can take advantage of this scheme to reduce their financial burden and make the most of their commercial properties.