As a property owner or landlord, one of the key considerations when it comes to managing your real estate portfolio is dealing with empty properties. Not only does an empty property mean a loss of potential income, but it also comes with additional costs, such as business rates. However, there is some relief available in the form of empty property rate relief.
empty property rate relief is a policy introduced by the government to provide some financial relief to property owners who have empty buildings. The relief is designed to help offset the burden of business rates that are still payable on properties that are not generating any income.
In the UK, business rates are taxes that businesses and property owners must pay to their local councils. These rates are based on the rateable value of the property and are payable whether the property is occupied or not. This means that if you have a property that is vacant, you could still be liable to pay business rates on it.
empty property rate relief provides some respite from this financial obligation. The relief can apply to both commercial and non-domestic properties, including industrial units, offices, shops, and warehouses. The amount of relief you may be eligible for can vary depending on the property’s location and the specific circumstances surrounding its vacancy.
There are several types of empty property rate relief that may be available to property owners. The most common form of relief is known as the “empty property relief” or “void relief.” This relief provides a complete exemption from paying business rates on commercial properties that have been empty for a certain period of time.
In England, most commercial properties are entitled to an initial three-month exemption from business rates when they become empty. After this initial period, certain types of properties, such as industrial properties, may be eligible for an additional three months of relief. However, it’s important to note that the rules surrounding empty property rate relief can differ between different regions of the UK, so it’s essential to check with your local council for specific details.
In addition to the standard empty property relief, there are also other forms of relief that property owners may be able to take advantage of. For example, if you are carrying out repairs or renovations on an empty property, you may be eligible for “unoccupied property rate relief.” This relief can provide a 100% exemption from business rates for up to 12 months while the property is undergoing works.
Another type of relief that may be available is the “enterprise zone relief.” This relief is designed to encourage property owners to invest in specific areas designated as enterprise zones by offering significant discounts on business rates for new developments or redevelopments. Property owners in enterprise zones may be eligible for up to 100% relief on business rates for a specified period.
It’s worth noting that not all properties that are empty will automatically qualify for empty property rate relief. There are certain criteria that must be met in order to be eligible for relief. For example, the property must be completely unoccupied and not used for any business purposes. Additionally, the property must be capable of occupation to be eligible for relief, so derelict or uninhabitable properties may not qualify.
Overall, empty property rate relief can provide some much-needed financial relief for property owners facing the burden of paying business rates on empty properties. By understanding the different types of relief available and the criteria that must be met, property owners can take advantage of these opportunities to reduce their financial obligations and make the most of their real estate investments.