As a property owner, it is essential to be aware of the various taxes and charges that come along with owning a property. One such charge that property owners need to understand is the empty rates exemption, also known as the empty property relief scheme. This scheme offers relief on business rates for properties that are empty for a certain period of time.
The empty rates exemption was introduced to provide some financial relief to property owners who are facing the challenge of keeping their properties empty for reasons beyond their control. This could be due to factors such as refurbishment works, structural repairs, or awaiting new tenants. However, it is important to note that not all empty properties are eligible for this exemption, and there are certain criteria that need to be met in order to qualify.
One of the main criteria for qualifying for the empty rates exemption is the length of time the property has been empty. In most cases, properties need to be empty for at least three months before they can apply for this relief. However, there are certain exemptions to this rule, such as properties that are undergoing structural repairs or refurbishment works, or properties that are being marketed for sale or letting.
Another important factor to consider is the rateable value of the property. The rateable value is used to calculate the business rates that a property owner needs to pay, and properties with a rateable value of less than £2,900 are eligible for a 100% exemption on empty rates. Properties with a rateable value between £2,900 and £12,000 are also eligible for a reduced rate of relief, while properties with a rateable value above £12,000 do not qualify for any relief.
It is also important to note that there are certain restrictions on the types of properties that can qualify for the empty rates exemption. For example, properties used for storage purposes, or properties that are left empty due to a change in ownership or occupation, may not be eligible for this relief. It is always advisable to check with the local council or a professional advisor to determine whether your property qualifies for this exemption.
In order to apply for the empty rates exemption, property owners need to contact their local council and provide evidence of the reasons why the property is empty. This could include copies of lease agreements, building survey reports, or planning permission documents. Once the application is approved, the property owner will receive a refund on the business rates that have been paid during the period that the property was empty.
It is important for property owners to keep in mind that the empty rates exemption is not a permanent solution and is only temporary relief. Once the property is occupied again, the full business rates will need to be paid as usual. It is also worth noting that the government has announced changes to the empty rates exemption scheme, which will come into effect in April 2023. These changes include reducing the length of time that a property needs to be empty in order to qualify for relief, as well as introducing new criteria for eligibility.
In conclusion, the empty rates exemption is a valuable relief scheme for property owners who find themselves with empty properties for a period of time. By understanding the criteria and requirements for this exemption, property owners can take advantage of this relief and save on business rates payments. However, it is important to keep in mind that this relief is only temporary and does not exempt property owners from paying business rates in the long term. If you are a property owner with empty properties, it is advisable to explore your options for empty rates exemption and seek advice from professionals to ensure you are taking full advantage of this relief scheme.