Empty buildings can be a headache for property owners and businesses alike. Not only do they present safety hazards and attract vandalism, but they also come with a hefty price tag known as empty building rates. However, there is a glimmer of hope for those who find themselves in this predicament – empty building rate relief.
What exactly is empty building rate relief, and how can businesses benefit from it? In this article, we will delve into the details of this scheme and explore how it can help alleviate the financial burden of owning an empty property.
empty building rate relief is a government initiative that provides a discount on business rates for certain types of vacant properties. Business rates, also known as non-domestic rates, are a tax that commercial property owners must pay to the local council. These rates are based on the rental value of the property and can be a significant expense for businesses, especially when the property is sitting empty.
The purpose of empty building rate relief is to incentivize property owners to bring vacant buildings back into use. By offering a temporary discount on business rates for empty properties, the government hopes to encourage investment in revitalizing neglected buildings and boosting economic activity in vacant areas.
There are several types of empty building rate relief that businesses can benefit from:
1. Empty property relief: This is the most common form of empty building rate relief, which provides a 100% discount on business rates for the first three months that a property is empty. After this initial period, businesses are still eligible for a 50% discount on business rates for the next three months. This relief can be a significant cost-saving measure for businesses that are struggling to find tenants for their vacant properties.
2. Listed building relief: Properties that are listed as historic buildings or have special architectural or historical significance may qualify for listed building relief. This relief provides a 100% discount on business rates for as long as the property remains empty. This is particularly beneficial for property owners who are in the process of restoring or renovating a listed building, as it allows them to focus on the project without the added financial burden of business rates.
3. Charitable and community amateur sports club relief: Charities and community amateur sports clubs that own vacant properties may be eligible for this relief, which provides an 80% discount on business rates. This can be a valuable benefit for organizations that are struggling to maintain empty buildings due to financial constraints.
4. Industrial and warehouse relief: Properties that are used for industrial or warehouse purposes may qualify for this relief, which provides a 100% discount on business rates for the first three months that the property is empty. After this initial period, businesses are still eligible for a 10% discount on business rates for the next six months. This relief is particularly beneficial for businesses in the industrial sector that may experience periods of vacancy due to seasonal fluctuations in demand.
It is important to note that empty building rate relief is not automatic and property owners must apply for it through their local council. In order to qualify for relief, businesses must demonstrate that the property is genuinely vacant and that they are actively seeking to bring the property back into use. This may involve providing evidence of marketing efforts to attract tenants or details of any renovation or redevelopment plans for the property.
In conclusion, empty building rate relief can provide a much-needed lifeline for businesses that are struggling to cope with the financial burden of owning a vacant property. By offering discounts on business rates for empty properties, the government aims to incentivize property owners to revitalize neglected buildings and stimulate economic growth in vacant areas. If you own a vacant property, it is worth exploring whether you qualify for empty building rate relief and taking advantage of this opportunity to reduce your business rates.