Empty Rates Exemption, also known as “empty rates exemption“, is a relief that businesses can apply for when their commercial property is empty and not generating any income. In the United Kingdom, business rates are charged on most non-domestic properties, including shops, offices, warehouses, and factories. However, when a property is empty, the owner is usually still liable to pay business rates unless they are eligible for the empty rates exemption.
The empty rates exemption was introduced to provide some relief to businesses that are struggling with empty properties. It is intended to encourage property owners to bring their empty properties back into use and to prevent derelict buildings from blighting the local area. By offering empty rates exemption, the government hopes to stimulate economic growth and encourage investment in commercial properties.
There are several ways in which businesses can qualify for empty rates exemption. The most common route is through the Small Business Rate Relief scheme. Under this scheme, businesses with a rateable value of less than £15,000 can claim empty rates exemption for up to 3 months. This can provide a much-needed financial buffer for businesses that are struggling to find tenants for their empty properties.
Another way in which businesses can benefit from empty rates exemption is through the Enterprise Zones scheme. Enterprise Zones are designated areas where businesses can receive a range of tax incentives and planning benefits, including empty rates exemption. By locating their businesses in an Enterprise Zone, owners can take advantage of the empty rates exemption to reduce their overheads and increase their profitability.
It’s worth noting that empty rates exemption is not automatic – businesses need to apply for it and meet certain criteria in order to qualify. For example, they may need to prove that they are actively seeking tenants for their empty properties and that they are not intentionally keeping them empty in order to avoid paying business rates. By demonstrating their commitment to bringing their properties back into use, businesses can increase their chances of being granted empty rates exemption.
One important thing to bear in mind is that empty rates exemption is only a temporary relief. Businesses can typically claim empty rates exemption for up to 3 months, after which they will be liable to pay business rates again if the property remains empty. This means that businesses need to act quickly to find tenants for their empty properties in order to avoid incurring additional costs.
There are a number of ways in which businesses can improve their chances of finding tenants for their empty properties. One option is to work with a commercial property agent who can help to market the property and find potential tenants. By leveraging their expertise and industry connections, agents can help businesses to find suitable tenants more quickly and efficiently.
Another option is to consider offering incentives such as rent-free periods or discounted rates to attract tenants. By making the property more attractive to potential tenants, businesses can increase their chances of securing a lease and avoiding empty rates exemption altogether.
In conclusion, empty rates exemption is a valuable relief that can help businesses to reduce their overheads and navigate the financial challenges of owning empty commercial properties. By understanding the criteria for empty rates exemption and taking proactive steps to find tenants, businesses can maximize their chances of qualifying for this relief and bringing their empty properties back into use.