As a property owner, vacancies can be a real headache. Not only are you losing out on potential rental income, but you may also still be required to pay business rates on the empty property. This is where void rates relief comes in. By understanding void rates relief and how it works, property owners can minimize the financial impact of empty properties on their bottom line.
void rates relief, also known as empty property relief, is a scheme provided by local councils to reduce the amount of business rates property owners have to pay on vacant properties. The relief is intended to provide some financial relief for property owners during periods when their properties are unoccupied and not generating any rental income. This can be particularly helpful for property owners who are struggling to find tenants or who are going through renovation works.
The amount of void rates relief you qualify for will depend on the specific circumstances of your property. In most cases, property owners are eligible for 100% relief for the first three months that a property is empty. After this initial period, the relief may be reduced to 50%, or the council may have its own criteria for determining the amount of relief you are entitled to.
It’s important to note that void rates relief only applies to certain types of properties. For example, industrial properties may qualify for void rates relief for up to six months, while listed buildings may be exempt from business rates altogether. It’s always best to check with your local council to see if your property qualifies for void rates relief and what the specific criteria are.
In order to apply for void rates relief, you will need to contact your local council and provide them with the necessary information about your property. This may include details about the property’s rateable value, when it became vacant, and any plans you have for the property in the near future. The council will then assess your application and inform you of how much void rates relief you are entitled to.
It’s worth noting that void rates relief is not automatic, and property owners must actively apply for the relief in order to receive it. Failing to apply for void rates relief could result in significant financial losses, as the property owner would still be required to pay the full amount of business rates on the empty property.
In some cases, property owners may be eligible for additional exemptions or reliefs on top of void rates relief. For example, properties that are undergoing major refurbishment or structural alterations may qualify for temporary relief from business rates. Similarly, certain types of charitable or community properties may be exempt from business rates altogether. Again, it’s best to check with your local council to see if your property qualifies for any additional reliefs or exemptions.
Overall, void rates relief can be a valuable tool for property owners looking to minimize the financial impact of empty properties. By understanding how void rates relief works and what is required to apply for it, property owners can take advantage of this scheme to reduce their business rates liability during periods of vacancy. However, it’s important to keep in mind that void rates relief is not automatic and that property owners must actively apply for the relief in order to receive it. By staying informed and proactive, property owners can make the most of void rates relief and protect their bottom line.