commercial property empty rates relief, also known as empty property rate relief, is an important consideration for businesses that own or lease commercial properties. This relief provides businesses with the opportunity to reduce the financial burden of paying business rates on empty properties.
Empty rates relief was introduced by the UK government as a measure to support businesses during times when their commercial properties are unoccupied. This relief helps businesses avoid paying full business rates on properties that are temporarily vacant due to reasons such as refurbishment, relocation, or economic downturn.
Business rates, also known as non-domestic rates, are taxes paid by businesses to local authorities for the properties they own or lease. These rates are based on the rateable value of the property, which is determined by the Valuation Office Agency. In the absence of tenants or occupants, businesses are still liable to pay business rates on empty properties unless they qualify for empty rates relief.
There are different types of empty rates relief available to businesses, each with its own criteria and eligibility requirements. The main types of empty rates relief include:
1. Empty property relief: This relief provides a 100% discount on business rates for the first three months that a property is empty. After the initial three months, the relief is reduced to 10% for most properties and 100% for industrial properties. This relief is available to all businesses, regardless of the reason for the property being empty.
2. Charitable and community amateur sports clubs relief: Charities and community amateur sports clubs are entitled to 80% relief on business rates for the entire time their properties are empty. This relief applies to properties that are wholly or mainly used for charitable purposes or sports activities.
3. Listed buildings relief: Properties that are listed as heritage assets by Historic England or the equivalent in Wales and Scotland are entitled to 100% relief on business rates for the entire time they are empty. This relief applies to properties that are of special architectural or historic interest.
4. Properties undergoing structural repairs: Businesses that are carrying out structural repairs on their properties are entitled to 100% relief on business rates for the entire time the property is empty. This relief applies to properties that are undergoing substantial repair work to make them habitable or usable.
It is important for businesses to understand the different types of empty rates relief available to them and to determine their eligibility for each type of relief. By taking advantage of these relief measures, businesses can reduce the financial impact of owning or leasing commercial properties that are temporarily unoccupied.
In addition to providing relief on empty properties, the UK government has also introduced measures to support businesses during the COVID-19 pandemic. As part of these measures, businesses in the retail, hospitality, and leisure sectors have been granted a 100% relief on business rates for the 2020-2021 tax year. This relief applies to properties that are used for retail, hospitality, or leisure activities and have been forced to close due to lockdown restrictions.
The COVID-19 pandemic has had a significant impact on businesses across the UK, with many struggling to stay afloat during these challenging times. The empty rates relief measures introduced by the government have provided much-needed support to businesses that have been forced to close their doors temporarily.
In conclusion, commercial property empty rates relief is an important consideration for businesses that own or lease commercial properties. By understanding the different types of relief available and their eligibility criteria, businesses can reduce the financial burden of paying business rates on empty properties. During these challenging times, the government’s support measures, including the relief provided to businesses during the COVID-19 pandemic, have been crucial in helping businesses navigate the economic uncertainties caused by the pandemic.