business rates relief on empty property, commonly known as the Empty Property Relief (EPR), is a scheme that provides relief on business rates for properties that are unoccupied. This scheme was designed to encourage property owners to bring vacant properties back into use and to prevent long-term vacancy. The relief helps businesses and property owners by reducing the financial burden of paying business rates on unused properties.
Business rates are taxes that property owners in the UK must pay on their business premises. The amount of business rates payable is based on the rateable value of the property, which is assessed by the local council. However, when a property is empty, the owner is still liable to pay business rates unless they qualify for relief under the EPR scheme.
Under the EPR scheme, eligible properties receive a discount on their business rates. The amount of relief varies depending on the type of property and the length of time it has been empty. For example, newly built property owners can receive up to 100% relief for the first three months of vacancy, and then 50% relief thereafter. Industrial properties can receive 100% relief for the first six months, followed by 10% relief for the remaining time. It is important to note that different rules may apply in Scotland, Wales, and Northern Ireland.
The aim of the EPR scheme is to incentivize property owners to bring their empty properties back into use. By providing relief on business rates, the scheme helps to reduce the financial burden of owning a vacant property and encourages property owners to invest in developing or refurbishing their properties. This, in turn, can help to revitalize areas and stimulate economic growth by attracting new businesses and creating jobs.
While the EPR scheme offers valuable benefits to property owners, there are some limitations and conditions that must be met to qualify for relief. For example, the property must be completely unoccupied to be eligible for relief. If the property is partially occupied, the owner will not qualify for relief on the empty part of the property. Additionally, properties that are actively being marketed for sale or rent may not qualify for relief if the marketing efforts are not considered sufficient by the local council.
It is important for property owners to be aware of the eligibility criteria and conditions of the EPR scheme to ensure they receive the relief they are entitled to. Failure to comply with the rules of the scheme could result in penalties and fines, so it is essential to seek advice from a qualified professional or the local council if unsure about eligibility.
In addition to the EPR scheme, there are other forms of relief available to property owners who may be struggling to pay their business rates. For example, small business rate relief is available to eligible small businesses that meet certain criteria, such as having a rateable value below a certain threshold. This relief provides a discount on business rates for qualifying businesses and can help to ease the financial burden of running a small business.
Overall, business rates relief on empty property plays a crucial role in supporting property owners and businesses by reducing the costs associated with owning vacant properties. The scheme helps to incentivize property owners to bring empty properties back into use, which can contribute to the economic growth and development of local communities. By understanding the eligibility criteria and conditions of the EPR scheme, property owners can take advantage of the relief available to them and make a positive impact on their properties and businesses.