empty premises rates relief, also known as vacant property relief, is a helpful tax incentive for property owners. This relief allows owners of empty properties to receive a reduction or complete exemption from paying business rates for a specified period. Business rates are taxes levied on non-domestic properties in the UK, and they are an essential source of income for local authorities to fund services like education, road maintenance, and emergency services.
empty premises rates relief was introduced to encourage property owners to invest in vacant properties and bring them back into use. The relief can provide financial support to owners who are struggling to find tenants or are carrying out repairs or renovations on their properties. By reducing the financial burden of business rates, empty premises rates relief aims to stimulate economic growth and revitalise vacant properties in towns and cities.
There are different types of empty premises rates relief available to property owners, depending on the circumstances of the property. The three main types of relief are:
1. Full exemption: Properties that are empty for a specified period, usually three or six months, are eligible for full exemption from business rates. This means that the property owner does not have to pay any rates during the exempt period. Full exemption provides a significant financial benefit to owners of vacant properties and allows them time to find tenants or carry out necessary works.
2. Partial exemption: Some properties may be eligible for partial exemption from business rates if they are only partially vacant. For example, a property that is empty on the ground floor but occupied on the upper floors may qualify for partial exemption. In this case, the property owner would only have to pay rates on the occupied part of the property, while the vacant part would be exempt.
3. Fresh start relief: Fresh start relief is available to new occupants who move into a property that has been empty for more than 12 months. The relief provides a 50% discount on business rates for the first 18 months of occupation, giving the new occupant time to establish their business and generate income before facing the full rate.
empty premises rates relief is a valuable tool for property owners, but it is important to be aware of the conditions and eligibility criteria. In some cases, owners may need to provide evidence to prove that their property is genuinely empty and not being used for any business purposes. Local authorities have the power to investigate claims of empty premises rates relief abuse and can revoke relief if they find evidence of misuse.
It is also worth noting that empty premises rates relief is not automatically applied to vacant properties – owners need to apply for the relief through their local council. Each council has its own application process and deadlines, so it is essential to check with the relevant authority to ensure that you receive the relief you are entitled to.
In conclusion, empty premises rates relief is a valuable tax incentive for property owners that can provide much-needed financial support during periods of vacancy. By reducing or exempting business rates on empty properties, the relief encourages owners to invest in their properties and bring them back into use, benefiting both property owners and local communities. However, it is essential to understand the conditions and eligibility criteria for empty premises rates relief and to apply for the relief through your local council to ensure that you receive the support you are entitled to.