When it comes to owning commercial property, one of the biggest expenses that can eat into your profits is business rates. These rates are charged on all non-domestic properties, including shops, offices, warehouses, and factories. However, did you know that there is a way to reduce your business rates liability when your property is empty? This is where commercial property empty rates relief comes in.
commercial property empty rates relief, also known as empty property rate relief, is a benefit that property owners can apply for to reduce or completely eliminate their business rates liability on vacant properties. This relief can significantly help property owners save money, especially during times when their properties are unoccupied and generating no income.
One of the main reasons why commercial property empty rates relief exists is to incentivize property owners to bring vacant properties back into use. By offering this relief, the government hopes to encourage property owners to actively seek tenants or buyers for their empty properties, thus boosting economic activity and revitalizing local communities.
There are different types of empty property rates relief available, each with its own set of eligibility criteria and benefits. The most common types of relief include:
1. Small business rates relief: This relief is available to small businesses occupying only one property with a rateable value below a certain threshold. If the property becomes vacant, the owner may still be eligible for this relief for a certain period of time.
2. Newly built properties relief: Property owners of newly constructed commercial properties are often granted relief on their empty rates for a set period, typically up to 18 months.
3. Charitable relief: Charities and non-profit organizations that own commercial properties are eligible for relief on their empty rates if the property is used for charitable purposes.
4. Industrial and storage relief: Owners of industrial and storage properties may qualify for relief on their empty rates, especially if the property is unsuitable for occupation due to its nature.
To apply for commercial property empty rates relief, property owners must first notify their local council of the property’s vacancy. The council will then determine whether the owner is eligible for any of the available relief schemes and inform them of the next steps.
It is important for property owners to keep in mind that empty property rates relief is not automatic and requires proactive engagement with the local council. Failure to apply for this relief can result in significant financial losses, especially for properties that remain vacant for extended periods.
In addition to applying for empty property rates relief, property owners can also take other steps to minimize their business rates liability on vacant properties. For example, they can consider temporary rental arrangements, such as short-term leases or licenses, to generate some income from the property while searching for a long-term tenant. This can not only help offset the costs of the empty rates but also make the property more attractive to potential tenants.
Furthermore, property owners can explore options for redeveloping or repurposing their vacant properties to make them more marketable and profitable. Whether through refurbishments, renovations, or changing the use of the property, these efforts can help increase the property’s appeal and potentially attract new tenants or buyers.
In conclusion, commercial property empty rates relief is a valuable benefit that can help property owners save money on their business rates when their properties are vacant. By taking advantage of this relief and exploring other strategies to minimize their rates liability, property owners can maximize their savings and make the most out of their investments. If you own a commercial property that is currently vacant, be sure to look into the empty property rates relief options available to you and take proactive steps to reduce your financial burden.