When it comes to owning a commercial property, there are various costs and fees that landlords need to consider. One of these expenses is business rates, which are charges that businesses or property owners need to pay to their local council. However, in certain situations, property owners may be eligible for an “empty rates exemption” which can help reduce their financial burden during periods of vacancy.
empty rates exemption, also known as empty property relief, is a policy that allows property owners to claim relief on their business rates for a certain period of time if their property is empty. This exemption was introduced to alleviate the financial strain on landlords who may struggle to find tenants for their properties, especially during economic downturns or when the property is undergoing refurbishment.
There are different criteria that need to be met in order to qualify for empty rates exemption. The length of time a property can be empty before relief can be claimed varies depending on the type of property and the local council’s policies. In general, most councils offer a 100% relief for the first three months that a property is empty. After this initial period, the level of relief may decrease, or property owners may need to pay the full rates.
It’s important for property owners to be aware of the rules and regulations surrounding empty rates exemption in their area. Failure to adhere to these guidelines can result in penalties or fines from the local council. Therefore, it’s advisable to seek advice from a professional or consult with the council to ensure compliance with the requirements.
There are certain circumstances where properties may not be eligible for empty rates exemption. For example, properties that are in a state of disrepair or have been vacant for an extended period of time may not be eligible for relief. Additionally, properties that are deemed to be exempt from business rates altogether, such as certain agricultural or industrial properties, will not qualify for empty rates exemption.
Property owners should also be aware of changes to the empty rates exemption policy, as these can impact their financial obligations. For example, the Government introduced new legislation in 2017 that reduced the level of relief available for empty properties. This change meant that properties that had been empty for more than three months were no longer eligible for the full 100% relief, and instead, faced a 50% increase in rates.
Despite the changes to the empty rates exemption policy, many property owners can still benefit from claiming relief on their business rates. This can provide significant cost savings, especially for landlords with multiple properties or those who are experiencing difficulties in finding tenants. By taking advantage of empty rates exemption, property owners can alleviate some of the financial pressures associated with owning commercial properties.
In conclusion, empty rates exemption is a valuable policy that can help property owners reduce their financial burden during periods of vacancy. By understanding the criteria and regulations surrounding this relief, landlords can navigate the process effectively and ensure compliance with the local council. While changes to the policy may impact the level of relief available, property owners can still benefit from claiming empty rates exemption to reduce their business rates and alleviate financial strain.