Empty rates exemption, also known as empty property relief, is a valuable benefit that property owners can apply for when their commercial properties become vacant. In the United Kingdom, commercial property owners are required to pay business rates on their properties. However, when a property becomes empty, the owner may be eligible to claim an exemption from paying these rates.
The empty rates exemption was introduced as a way to provide financial relief to property owners who are unable to generate income from their vacant properties. It aims to alleviate some of the financial burden of owning empty commercial properties and encourage property owners to bring their properties back into use. Understanding how the empty rates exemption works and how to apply for it can help property owners make the most of this valuable benefit.
Eligibility Criteria for empty rates exemption
Property owners must meet certain criteria to be eligible for empty rates exemption. In general, the property must be completely vacant and not in use in any way for business purposes. This includes properties that are undergoing refurbishment or redevelopment, as well as properties that are simply empty and not being used for any purpose.
The length of time that a property can be exempt from paying rates varies depending on the type of property and its rateable value. In England, properties with a rateable value of less than £2,900 are exempt from paying rates for as long as they remain empty. Properties with a rateable value between £2,900 and £12,000 are exempt for three months, while properties with a rateable value of over £12,000 are exempt for six months.
In Scotland, properties with a rateable value of less than £1,700 are exempt for as long as they remain empty. Properties with a rateable value between £1,700 and £9,000 are exempt for three months, while properties with a rateable value over £9,000 are exempt for six months.
Applying for empty rates exemption
To apply for empty rates exemption, property owners must contact their local council and provide information about the property, including its rateable value and the reason for its vacancy. The council will review the application and determine whether the property is eligible for exemption. Property owners may be required to provide evidence to support their application, such as photos of the empty property or documentation showing that the property is not in use.
Once the application is approved, the property owner will receive a notification of the exemption and will not be required to pay business rates for the specified period of time. It is important for property owners to keep track of the exemption period and reapply for exemption if the property remains empty after the initial period expires.
Benefits of empty rates exemption
Empty rates exemption provides several benefits to property owners, including financial relief and incentives to bring vacant properties back into use. By exempting property owners from paying business rates on empty properties, the exemption helps to reduce the financial burden of owning vacant properties and encourages property owners to invest in refurbishment or redevelopment projects to bring their properties back into use.
In addition to financial benefits, empty rates exemption can also help to improve the local economy and revitalize vacant properties. By providing incentives for property owners to bring their properties back into use, the exemption can help to attract new businesses and investment to the area, creating jobs and stimulating economic growth.
Overall, empty rates exemption is a valuable benefit for property owners with vacant commercial properties. By understanding the eligibility criteria and application process, property owners can take advantage of this benefit to alleviate the financial burden of owning empty properties and contribute to the revitalization of their local community.