Commercial property empty rates relief, also known as 80% empty property relief, is a scheme designed to provide relief for businesses that have vacant commercial properties. This relief is intended to help alleviate the costs associated with owning and maintaining a property that is not in use, providing financial support to business owners during times of vacancy.
Empty Rates Relief is a term that is often misunderstood by many in the commercial property sector. Some business owners may not be aware of this relief or how it can benefit them, while others may have misconceptions about the eligibility criteria or application process. In this article, we will discuss the basics of commercial property empty rates relief, how it works, who is eligible, and how businesses can apply for this relief.
What is commercial property empty rates relief?
Empty Rates Relief, or 80% empty property relief, is a scheme that allows businesses to receive relief on their business rates if their commercial property is empty. Normally, business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, if a property becomes empty, business owners may be entitled to a reduction in their rates bill.
The relief provides a 100% discount for the first three months that a property is empty, followed by a 10% discount for the remaining period that the property remains vacant. This means that businesses will only have to pay 20% of their usual rates bill for properties that have been empty for over three months.
Who is Eligible for Empty Rates Relief?
To be eligible for Empty Rates Relief, businesses must meet certain criteria set by the local council. Generally, the property must be completely unoccupied and unfurnished, meaning that no goods or possessions are stored on the premises. Additionally, the property must be actively marketed for rent or sale, and the business owner must be able to provide evidence of this marketing activity.
It is important for businesses to understand that empty rates relief is not automatic and must be applied for separately from the usual rates bill. Each local council may have different requirements and deadlines for applying for empty rates relief, so it is recommended that business owners check with their council to ensure they meet the eligibility criteria and submit their application in a timely manner.
How to Apply for Empty Rates Relief
Applying for Empty Rates Relief is a relatively straightforward process, but it is important for businesses to provide the necessary supporting documentation to prove their eligibility. This may include evidence of the property being vacant, such as utility bills showing zero consumption, and evidence of marketing activity, such as details of the property listing on commercial real estate websites or in local publications.
Business owners can typically apply for empty rates relief online through their local council’s website, or by contacting the council’s business rates department directly. It is important to note that businesses must reapply for empty rates relief each year that the property remains empty, as the relief is not automatically renewed.
Benefits of Empty Rates Relief
Empty Rates Relief can provide significant financial support to businesses that are experiencing periods of vacancy. By reducing the financial burden of paying full business rates on empty properties, businesses can save money that can be reinvested back into the company or used to cover other expenses during challenging times.
Additionally, empty rates relief can help incentivize business owners to actively market their vacant properties for rent or sale, as the relief is contingent upon the property being actively marketed. This can help stimulate the local economy by encouraging the utilization of empty commercial properties and attracting new businesses to the area.
In conclusion, commercial property empty rates relief is a valuable scheme that provides relief to businesses that have vacant commercial properties. By understanding the basics of empty rates relief, who is eligible, how to apply, and the benefits of this relief, business owners can take advantage of this financial support during periods of vacancy. It is important for businesses to stay informed about the empty rates relief scheme and ensure they meet the eligibility criteria and deadlines to maximize their savings on business rates.