As a property owner, you may be familiar with the term “empty rates exemption” or perhaps you have come across it while researching ways to reduce costs associated with owning vacant properties. empty rates exemption can be a valuable tool for property owners seeking relief from the financial burden of business rates on empty properties. In this article, we will explore what empty rates exemption is, how it works, and who is eligible to claim it.
empty rates exemption, also known as empty property relief, is a scheme offered by the UK government that provides relief on business rates for certain types of empty properties. Business rates, also referred to as non-domestic rates, are taxes that commercial property owners must pay to their local council. These rates are calculated based on the rental value of the property and are used to fund local services such as schools, roads, and emergency services.
When a commercial property becomes vacant, the property owner may be eligible for empty rates exemption, which reduces or eliminates the business rates that they would otherwise have to pay on the property. The level of relief available will depend on the circumstances of the property and the local council’s specific policy on empty rates exemption.
There are several types of empty rates exemption that property owners may be eligible for, including:
1. Unoccupied property relief: This is the most common form of empty rates exemption and provides relief for properties that are empty and unused. The amount of relief available will depend on the length of time the property has been empty, with longer periods typically resulting in higher levels of relief.
2. Listed building exemption: Properties that are deemed to be of historical or architectural significance and are listed on the National Heritage List for England may be eligible for exemption from business rates while they are empty.
3. Charity and community amateur sports club exemption: Properties that are owned by registered charities or community amateur sports clubs may be eligible for empty rates exemption if they are used for charitable purposes when occupied.
4. Industrial and warehouse exemption: Properties that are used for industrial or warehouse purposes may be eligible for reduced rates when empty, as these types of properties can be more difficult to re-let in certain economic conditions.
It is important for property owners to be aware of the specific criteria for each type of empty rates exemption and to keep proper records of the circumstances surrounding their property’s vacancy in order to claim relief. Failure to do so could result in missed opportunities to reduce business rates payments and unnecessary financial strain.
In order to claim empty rates exemption, property owners must apply to their local council and provide any necessary supporting documentation. This may include evidence of the property’s vacancy, details of any previous tenants, and information on the property’s condition and suitability for re-letting. It is important to note that empty rates exemption is not automatic and must be applied for in order to be granted by the local council.
Property owners should also be aware that empty rates exemption is not permanent and may be subject to review by the local council. In some cases, councils may revoke empty rates exemption if they believe that the property is being deliberately kept empty in order to avoid paying business rates. Property owners should therefore be prepared to demonstrate that they are actively seeking to re-let or sell the property in order to maintain their eligibility for relief.
In conclusion, empty rates exemption can be a valuable tool for property owners seeking relief from the financial burden of business rates on empty properties. By understanding the different types of exemption available, keeping proper records, and actively seeking to re-let or sell their vacant properties, property owners can take advantage of this scheme to reduce costs and manage their properties more effectively. Remember, empty rates exemption is there to help property owners, so be sure to explore all of your options and make the most of this opportunity.