empty premises business rates relief, also known as empty property relief, is a scheme that provides relief on business rates for certain empty properties. This relief is offered to property owners to ease the financial burden of paying business rates on premises that are not currently in use or occupied. The purpose of this relief is to encourage property owners to bring their empty properties back into use and to prevent derelict buildings from blighting local communities.
Business rates, also known as non-domestic rates, are a tax on business properties that help fund local services such as schools, roads, and waste collection. Property owners are legally required to pay business rates on their premises, whether they are occupied or empty. However, empty premises business rates relief provides some relief from this financial obligation.
There are different types of empty premises business rates relief available, depending on the circumstances of the property. The most common type of relief is the 100% relief for properties that are empty and have a rateable value of under a certain threshold. In England, this threshold is set at £2,900 for 2021-2022. Properties with a rateable value below this threshold are eligible for 100% relief for as long as the property remains empty.
In addition to the 100% relief, there are other types of relief available for empty properties. For example, properties that are empty due to certain legal reasons, such as bankruptcy or liquidation, may be eligible for relief for up to three months. Properties that are undergoing structural repairs or alterations may also be eligible for relief for a set period of time. Property owners should check with their local council to see if their empty property qualifies for any of these types of relief.
It is important for property owners to be aware of the empty premises business rates relief scheme and to take advantage of it if they have an empty property. Paying business rates on an empty property can be a significant financial burden, especially for small businesses or property owners who are struggling financially. By applying for empty premises business rates relief, property owners can save money and potentially bring their empty property back into productive use.
There are benefits to local communities as well. Empty properties can become eyesores and attract vandalism or anti-social behavior. By encouraging property owners to bring their empty properties back into use, empty premises business rates relief can help revitalize local areas and improve the overall appearance and safety of a neighborhood.
However, there are some criticisms of the empty premises business rates relief scheme. Critics argue that the relief incentivizes property owners to keep their properties empty for longer periods of time to avoid paying business rates. This can lead to a lack of available commercial space and contribute to the decline of high streets and town centers. Some critics also argue that the relief disproportionately benefits larger property owners who can afford to keep properties empty for longer periods of time.
Despite these criticisms, empty premises business rates relief plays an important role in supporting property owners who may be struggling financially or facing challenges in finding tenants for their empty properties. The relief scheme aims to strike a balance between encouraging property owners to bring their empty properties back into use and ensuring that local communities are not blighted by derelict buildings.
In conclusion, empty premises business rates relief is an important scheme that provides relief on business rates for certain empty properties. By offering financial support to property owners, the scheme aims to encourage the reuse of empty properties and prevent derelict buildings from blighting local communities. It is important for property owners to be aware of the relief available to them and to take advantage of it if they have an empty property. By doing so, property owners can save money and potentially contribute to the revitalization of their local area.