The issue of business rate relief for empty property is a pressing concern for many property owners and businesses across the UK. With rates on commercial properties often amounting to significant sums, especially in prime locations, the burden of paying business rates on empty properties can be a significant financial strain.
Business rates are a tax on non-domestic properties that are used for commercial purposes. They are a major source of income for local authorities, and the rates are calculated based on the rateable value of the property. When a property is empty, the owner is still liable to pay business rates unless they qualify for an exemption or relief.
One of the ways in which property owners can reduce the financial burden of business rates on empty properties is by taking advantage of the various relief schemes that are available. These schemes are designed to provide financial support to property owners and businesses that are struggling to pay business rates on empty properties.
There are several types of relief schemes available, including:
1. Empty property rate relief: This scheme provides a full exemption from business rates for properties that are empty for a specific period of time. The length of the exemption period varies depending on the type of property and its location. In general, properties that are empty for three months or less are exempt from business rates, while properties that are empty for longer periods may be eligible for further relief.
2. Small business rate relief: This scheme provides a discount on business rates for small businesses that operate from one property and have a rateable value below a certain threshold. The amount of relief available depends on the rateable value of the property and can significantly reduce the amount of business rates payable.
3. Retail rate relief: This scheme provides a discount on business rates for retail properties that have a rateable value below a certain threshold. The relief is designed to support struggling high street businesses and encourage investment in retail areas.
4. Hardship relief: This scheme provides financial support to property owners who are experiencing financial hardship and are struggling to pay their business rates. To qualify for hardship relief, property owners must demonstrate that they are facing genuine financial difficulties and provide evidence of their financial situation.
In addition to these relief schemes, property owners can also take steps to minimize their business rates liability on empty properties. This includes actively marketing the property for sale or rent, as properties that are actively being marketed are eligible for a 50% discount on their business rates for the first six months that they are empty.
Property owners can also consider applying for a temporary change of use for the property, which may result in a lower rateable value and reduced business rates liability. For example, a property that is currently classified as a retail property could be temporarily used as a storage facility, which may result in a lower rateable value and lower business rates.
Overall, business rate relief for empty property is a valuable tool that can help property owners reduce their financial burden and support struggling businesses. By taking advantage of the relief schemes available and actively managing their properties, property owners can maximize their relief and minimize their business rates liability.