empty property relief, also known as unoccupied property rates or vacant property relief, is a valuable opportunity for property owners to save money on their business rates. This relief is granted to owners of properties that are empty for a certain period of time, providing a temporary break from paying business rates while the property remains unoccupied.
The main purpose of empty property relief is to encourage property owners to bring vacant properties back into use more quickly, reducing the number of empty properties in a given area. By offering this relief, local authorities hope to stimulate economic activity and prevent the negative impacts of derelict buildings on local communities.
Property owners can apply for empty property relief if their property meets certain criteria set by the local council. Typically, the property must be completely unoccupied and unfurnished, and the owner must have no plans to occupy the property in the near future. Some local councils may require owners to provide proof of their efforts to market the property for rent or sale in order to qualify for empty property relief.
The length of time for which empty property relief is granted varies depending on the local authority. Some councils offer a 100% exemption from business rates for the first three or six months of vacancy, while others may provide relief for up to 12 months or longer. After the initial relief period expires, owners may be eligible for a reduced rate of business rates known as a “skeleton” rate, which is typically set at 50% of the full rate.
There are several ways in which property owners can maximize their savings with empty property relief. One strategy is to time the vacancy of the property strategically to take advantage of the relief period. For example, if the property is due to become vacant in the near future, owners may choose to delay letting or selling the property until the beginning of the next billing cycle in order to avoid paying business rates for as long as possible.
Another way to maximize savings with empty property relief is to actively market the property for rent or sale during the vacancy period. By demonstrating to the local council that efforts are being made to bring the property back into use, owners may be more likely to qualify for additional relief periods or reduced rates. This can also help to attract potential tenants or buyers and generate income for the property owner once the property is occupied again.
Property owners should be aware that there are some restrictions on empty property relief that may apply in certain circumstances. For example, properties that are empty due to structural repairs or alterations may not qualify for relief if the work is expected to take more than 3 or 6 months to complete. Additionally, properties that are being demolished or undergoing redevelopment may be exempt from business rates altogether, as they are no longer considered viable for occupation.
In some cases, property owners may be required to pay an empty property premium on top of the standard business rates if the property has been empty for an extended period of time. This premium is designed to discourage property owners from leaving buildings empty for long periods and to incentivize them to bring the property back into productive use more quickly. It is important for property owners to understand the implications of the empty property premium and to factor this into their financial planning.
Overall, empty property relief can be a valuable opportunity for property owners to save money on their business rates and avoid the financial burden of paying full rates for unoccupied properties. By understanding the criteria for qualification and implementing strategies to maximize savings, owners can make the most of this relief and contribute to the revitalization of their properties and local communities.