As a property owner, you may have heard of the term “empty rates exemption” but might not fully understand what it entails. empty rates exemption refers to the relief that is granted to owners of vacant properties from paying business rates. This exemption is put in place to ease the financial burden on property owners who are unable to generate any income from their vacant properties.
Business rates, also known as non-domestic rates, are taxes that are levied on most non-domestic properties, including commercial properties, shops, offices, and warehouses. These rates are based on the rateable value of the property and are used to fund local services such as schools, roads, and waste collection. However, when a property becomes vacant, the owner is still liable to pay business rates unless they qualify for an empty rates exemption.
There are several circumstances under which a property owner may be eligible for empty rates exemption. One common scenario is when a property is temporarily vacant due to repair or renovation work. In such cases, property owners may be granted a period of empty rates exemption to allow for the necessary work to be carried out without incurring additional financial costs.
Another situation where empty rates exemption may apply is when a property is vacant because the owner is actively seeking a new tenant or buyer. In these cases, property owners may be granted a temporary exemption from paying business rates until a new occupier is found.
It is important to note that empty rates exemption is not automatic and property owners must apply for the relief through their local council. Each council has its own criteria for granting empty rates exemption, so it is advisable to contact the local council to inquire about the eligibility requirements and application process.
In addition to temporary exemptions, there are also long-term empty rates exemptions available to property owners. Properties that have been empty for a certain period of time, usually three months or more, may qualify for long-term empty rates exemption. However, property owners must be able to demonstrate that they are actively trying to reoccupy the property in order to qualify for this relief.
It is also important to be aware that there are certain types of properties that are not eligible for empty rates exemption. For example, properties that are used for storage purposes or that are designated as listed buildings may not qualify for the relief. Additionally, properties that are undergoing a change of use or that are being demolished may also be exempt from empty rates.
Property owners should also be aware of the implications of failing to pay business rates on an empty property. Failure to pay business rates on a vacant property can result in legal action being taken by the local council, including court proceedings and the possibility of the property being repossessed.
In summary, empty rates exemption is a relief that is granted to property owners who are unable to generate income from their vacant properties. Whether the property is empty due to renovation work, actively seeking a new occupier, or has been vacant for an extended period of time, property owners may be eligible for empty rates exemption. It is important for property owners to understand the eligibility criteria and application process for empty rates exemption in order to avoid incurring unnecessary financial costs.