When it comes to owning commercial property, one of the biggest challenges faced by business owners is dealing with business rates These rates are taxes that are imposed on commercial properties and are payable by the owners or occupiers of these properties Business rates can be a significant expense for businesses, especially for those that own empty properties However, there are ways to mitigate this financial burden through business rate relief for empty properties.
Business rate relief for empty properties is a way for property owners to receive a reduction in the amount of business rates that they are required to pay on properties that are unoccupied This relief is intended to provide some financial support to property owners who are unable to find tenants for their properties or are in the process of refurbishing or redeveloping them.
One of the most common forms of business rate relief for empty properties is the Empty Property Rates Relief (EPRR) scheme This scheme allows property owners to receive a 100% discount on business rates for the first three months that a property is empty After the initial three-month period, the property owner will be required to pay the full amount of business rates unless they qualify for additional relief.
In order to qualify for additional relief under the EPRR scheme, property owners must meet certain criteria set out by their local council These criteria may include providing evidence that the property is actively being marketed for rent or sale, or that it is undergoing renovation or redevelopment work Property owners may also be required to pay a reduced rate of business rates if they can demonstrate that the property is in need of repair or is not suitable for occupation.
Another form of business rate relief for empty properties is known as the Small Business Rate Relief (SBRR) scheme This scheme is designed to provide financial support to small businesses that own empty properties business rate relief empty properties. Under the SBRR scheme, eligible property owners can receive a discount on their business rates based on the rateable value of their property.
To be eligible for SBRR, property owners must meet certain criteria, such as occupying a single property with a rateable value of less than £15,000, or occupying one main property with a rateable value of less than £2,900 and additional properties with rateable values of less than £15,000 Property owners who qualify for SBRR can receive discounts of up to 50% on their business rates.
In addition to the EPRR and SBRR schemes, there are other forms of business rate relief available to property owners with empty properties These may include hardship relief, charitable rate relief, or discretionary rate relief, which are typically offered on a case-by-case basis by local councils.
In order to maximize business rate relief for empty properties, property owners should be proactive in seeking out and applying for the relief schemes that they are eligible for This may involve working closely with their local council to provide evidence of their eligibility and to ensure that they are receiving the maximum amount of relief available to them.
Property owners should also be aware of any changes to business rate relief schemes that may affect them in the future For example, the government has recently announced plans to reform the EPRR scheme to provide additional support to property owners affected by the COVID-19 pandemic These changes are designed to help businesses that have been forced to close or reduce their operations due to the pandemic, and may include extended relief periods or increased discounts on business rates.
In conclusion, business rate relief for empty properties can provide much-needed financial support to property owners who are struggling to find tenants or are in the process of refurbishing or redeveloping their properties By taking advantage of the various relief schemes available, property owners can minimize their business rates and ease the financial burden of owning empty properties With proper planning and proactive engagement with their local council, property owners can maximize their business rate relief and ensure that they are receiving the support that they are entitled to under the law.