When it comes to owning commercial property, there are various costs that can eat into your profits. One of the major expenses that property owners face is business rates, which are charged on most non-domestic properties, including shops, offices, factories, and warehouses. However, there is a way for property owners to potentially save money on these rates through the use of empty rates relief.
Empty rates relief is a tax incentive offered by the government to commercial property owners who have empty properties. This relief is designed to help property owners cope with the financial burden of having properties that are not generating income. By applying for and utilizing empty rates relief, property owners can potentially save thousands of pounds each year on their business rates.
One of the main benefits of empty rates relief is the potential for significant cost savings. When a commercial property is vacant, property owners are still required to pay business rates on the property, which can be a substantial financial burden. However, by applying for empty rates relief, property owners can reduce or even eliminate these rates, saving them a significant amount of money each year.
In addition to cost savings, empty rates relief can also help property owners attract new tenants. When potential tenants are considering renting a property, they are often deterred by the additional cost of business rates. By offering a property with empty rates relief, property owners can make their properties more attractive to potential tenants, increasing the likelihood of finding a new tenant more quickly.
There are several types of empty rates relief available to commercial property owners, including:
1. Small Business Rates Relief: This relief is available to small businesses with only one property. Property owners are eligible for this relief if the rateable value of their property is below a certain threshold. Small business rates relief can provide property owners with a discount of up to 100% on their business rates.
2. Exempt from Empty Property Rates: Some types of properties are exempt from empty property rates, including agricultural buildings, listed buildings, and properties with a rateable value of less than £2,900. Property owners of exempt properties do not have to pay any business rates on their empty properties.
3. Charitable Exemption: Properties owned by registered charities are also exempt from empty property rates. This exemption applies to properties that are used for charitable purposes even when they are vacant.
4. Industrial Relief: Industrial properties that are vacant may be eligible for industrial relief, which provides a discount on business rates for these properties. This relief can help industrial property owners save money on their rates while they are searching for new tenants.
It is important for property owners to be aware of the various types of empty rates relief available to them and to understand the eligibility criteria for each type of relief. By taking advantage of these relief options, property owners can potentially save a significant amount of money on their business rates and make their properties more attractive to potential tenants.
In conclusion, commercial property empty rates relief can be a valuable tool for property owners looking to save money on their business rates and attract new tenants. By utilizing the different types of empty rates relief available, property owners can potentially save thousands of pounds each year and make their properties more competitive in the rental market. If you own a commercial property that is currently vacant, it is worth exploring the options for empty rates relief to see how you can maximize your savings and make your property more attractive to potential tenants.