As a property owner or manager, dealing with empty commercial properties can be a costly expense. Not only are you missing out on potential rental income, but you may also be facing hefty business rates costs on top of that. However, there is a solution that can help alleviate some of the financial burden associated with empty commercial properties – empty rates relief.
Empty rates relief, often referred to as commercial property empty rates relief, is a scheme put in place by the government to provide financial assistance to property owners facing high business rates on properties that are currently empty. This relief can help to reduce or even completely eliminate the rates that would normally be charged on empty commercial properties, making it a valuable tool for saving money and maximizing profits.
There are several types of empty rates relief available, each with its own set of criteria and requirements. The most common form of relief is known as the “mandatory relief” which provides a 100% exemption from business rates for the first three months that a property is empty. After the initial three months, the relief is reduced to 50% for industrial properties and completely removed for other types of commercial properties.
In addition to mandatory relief, there is also discretionary relief which can be applied for on a case-by-case basis. This type of relief is typically granted for properties that have been empty for an extended period of time, often due to circumstances beyond the owner’s control. By providing evidence of efforts to market the property or plans to bring it back into use, property owners may be eligible for further relief on their empty rates.
It is important for property owners to be aware of the various types of relief available and to take advantage of them whenever possible. By doing so, they can significantly reduce the financial impact of having empty commercial properties and help to ensure that they remain profitable in the long run.
In order to qualify for empty rates relief, there are certain criteria that must be met. Properties must be completely empty and not in use for any purpose in order to be eligible for relief. Additionally, properties undergoing refurbishment or redevelopment may also qualify for relief as long as they are not currently being used for any business purposes.
It is also important to note that not all properties will qualify for empty rates relief. Properties that are in use for certain purposes, such as storage or industrial activities, may still be subject to business rates even if they are not fully occupied. Property owners should carefully review the guidelines and regulations surrounding empty rates relief to determine their eligibility and take the necessary steps to apply for relief.
In order to apply for empty rates relief, property owners will need to contact their local council and fill out the necessary forms and paperwork. It is important to provide all relevant information and documentation to support the application in order to improve the chances of approval. Property owners may also need to provide evidence of efforts to market the property or plans to bring it back into use in order to qualify for discretionary relief.
By taking advantage of empty rates relief, property owners can save a significant amount of money on their business rates costs and help to mitigate the financial impact of having empty commercial properties. This can help to protect their bottom line and ensure that their properties remain profitable in the long run.
In conclusion, empty rates relief is a valuable tool for property owners facing high business rates costs on empty commercial properties. By understanding the types of relief available, the criteria for eligibility, and the application process, property owners can maximize their savings and ensure that their properties remain profitable. Empty rates relief can help to alleviate the financial burden of having empty commercial properties and provide a much-needed boost to the bottom line.