Empty buildings can be a major headache for property owners, especially when it comes to business rates. However, there is relief available in the form of empty building business rates relief. This scheme aims to provide some financial assistance to owners of vacant commercial properties, helping to reduce the burden of business rates while the property sits empty.
Business rates are a tax on non-domestic properties, charged by local authorities in England, Scotland, and Wales. They are based on the rateable value of a property, which is assessed by the Valuation Office Agency (VOA) in England and Wales, and the Scottish Assessors Association in Scotland. In most cases, business rates must be paid on all commercial properties, whether they are occupied or empty.
This can pose a significant problem for property owners, especially when a property is vacant for a prolonged period. Empty buildings not only generate no income for the owner, but they also incur additional costs such as security, maintenance, and insurance. On top of that, they must still pay business rates on the property, adding to the financial strain.
empty building business rates relief is designed to alleviate some of this financial pressure. Under this scheme, owners of empty commercial properties are eligible for a reduction in the amount of business rates they must pay. The level of relief varies depending on the location and size of the property, but in many cases, it can provide a significant benefit to property owners.
In England, for example, empty properties with a rateable value below £2,900 are exempt from business rates entirely for up to three months. After that, the owner is eligible for a 100% discount on the rates for a further three months. Larger properties with a rateable value of over £2,900 but below £12,000 receive a 100% discount for the first three months, followed by a 50% discount for the next three months.
In Scotland, similar relief is available for empty properties with a rateable value of up to £1,700. These properties are exempt from business rates entirely for up to three months, with a 50% discount for the following three months. Larger properties with a rateable value of over £1,700 but below £15,000 receive a 10% discount on the rates.
Wales also offers empty building business rates relief, with properties exempt from business rates for up to three months if they have a rateable value of less than £2,400. Larger properties with a rateable value of over £2,400 but below £12,000 receive a 50% discount on the rates.
It is important to note that empty building business rates relief is not automatic – property owners must apply for the relief through their local authority. Owners must also demonstrate that the property is genuinely empty and not being used for any business purposes. This can include providing evidence such as photographs, utility bills, or a signed declaration confirming the property is vacant.
While empty building business rates relief can provide a welcome financial reprieve for property owners, it is not a long-term solution. The relief is only temporary, and owners must still find a way to either sell, lease, or develop the property to avoid incurring ongoing costs. Additionally, the relief does not apply to properties that have been empty for an extended period – in England, properties that have been vacant for more than two years may see their relief reduced or withdrawn entirely.
Despite these limitations, empty building business rates relief is a valuable resource for property owners facing the financial burden of vacant commercial properties. By taking advantage of this relief, owners can alleviate some of the financial strain and work towards finding a more permanent solution for their empty buildings.
In conclusion, empty building business rates relief is a valuable resource for property owners facing the financial burden of vacant commercial properties. By providing a reduction in business rates for empty properties, this scheme offers some financial assistance to owners while they work towards finding a more permanent solution for their vacant buildings. Property owners should be aware of the eligibility criteria and application process for this relief in order to take full advantage of its benefits.