When a property is vacant and not generating any income, property owners can often face a financial burden in the form of business rates, also known as non-domestic rates. These rates are charged on most non-domestic properties, including commercial properties and empty premises. In order to alleviate some of the financial strain on property owners, local authorities offer void rates relief.
void rates relief, also known as empty property relief, is a discount on business rates that is available to property owners when their property becomes empty. The purpose of this relief is to provide temporary financial support to property owners during periods when their property is not generating any income. This can occur when a property is between tenants, undergoing renovation, or simply remains vacant for any reason.
The amount of void rates relief that a property owner is eligible to receive can vary depending on the local authority and the specific circumstances of the property. In some cases, property owners may be eligible for a 100% discount on their business rates for a specific period of time while their property remains vacant. In other cases, the relief may be partial, with property owners still being required to pay a portion of the rates.
It is important for property owners to understand the criteria for void rates relief in order to ensure that they are receiving the appropriate amount of relief that they are entitled to. Generally, in order to qualify for void rates relief, the property must be unoccupied and capable of being occupied. This means that the property must be in a condition where it could be rented out or used for commercial purposes.
It is worth noting that some properties may be exempt from paying business rates altogether, even when they are empty. This includes properties that are used for certain purposes such as agriculture or the training of disabled people. Additionally, newly built properties are often eligible for a period of exemption from business rates.
While void rates relief can provide temporary financial relief to property owners, it is important to remember that this relief is typically only available for a limited period of time. Property owners should be proactive in seeking new tenants or making necessary improvements to their property in order to minimize the amount of time that their property remains vacant and eligible for void rates relief.
In addition to void rates relief, there are other strategies that property owners can implement in order to reduce their business rates liability. For example, property owners may be able to challenge the rateable value of their property through a process known as business rates appeals. By demonstrating that the rateable value of their property is too high, property owners may be able to secure a reduction in their business rates.
Overall, void rates relief can be a valuable tool for property owners who are facing financial challenges due to their property being vacant. By taking advantage of this relief and exploring other strategies to reduce business rates liability, property owners can effectively manage their finances and ensure the long-term success of their property investments.