Empty building business rates relief, commonly referred to as simply the “empty building business rates relief“, is a policy that has both benefits and drawbacks for property owners. The purpose of this relief is to offer financial assistance to property owners who are unable to find tenants for their vacant buildings. This relief can provide a significant reduction in business rates, which are taxes levied on non-domestic properties.
The British government introduced the empty building business rates relief in response to concerns about the increasing number of vacant commercial properties across the country. These empty buildings not only detract from the aesthetics of a neighborhood, but they can also attract crime and vandalism. By offering relief on business rates, the government hopes to incentivize property owners to bring their vacant buildings back into use, thus revitalizing the local economy.
There are several criteria that a property owner must meet in order to qualify for the empty building business rates relief. First and foremost, the building must be unoccupied for a certain period of time, usually at least three months. This stipulation ensures that property owners are not taking advantage of the relief by purposely leaving their buildings vacant. Additionally, the property must be actively being marketed for rent or sale in order to qualify for the relief. This requirement ensures that property owners are making a genuine effort to find tenants for their buildings.
While the empty building business rates relief can provide much-needed financial relief to property owners, it also has its drawbacks. One of the main criticisms of the relief is that it can encourage property owners to keep their buildings empty in order to avoid paying business rates. This can exacerbate the problem of vacant properties in a neighborhood, as property owners have less incentive to find tenants for their buildings. Additionally, the relief can create an unequal playing field for businesses that are already struggling to compete in the market. Property owners who receive the relief may have an unfair advantage over their competitors who are paying full business rates.
Despite these drawbacks, the empty building business rates relief has proven to be a valuable tool for property owners who are struggling to find tenants for their vacant buildings. In some cases, property owners may be unable to find tenants due to economic factors or changing market conditions. The relief can provide some much-needed financial breathing room for these property owners while they work to find tenants for their buildings. Additionally, the relief can help to offset the costs of maintaining a vacant building, such as security and maintenance expenses.
In recent years, the government has made changes to the empty building business rates relief in order to address some of the criticisms leveled against the relief. For example, in 2017, the government introduced a new rule that limited the relief to two years for properties that have been empty for an extended period of time. This change was intended to prevent property owners from taking advantage of the relief by keeping their buildings empty for an indefinite period.
Overall, the empty building business rates relief is a valuable tool for property owners who are struggling to find tenants for their vacant buildings. The relief can provide much-needed financial assistance and incentivize property owners to bring their buildings back into use. However, it is important for the government to carefully monitor the impact of the relief and make changes as necessary to ensure that it is not being abused. By striking a balance between providing relief to property owners and preventing abuse of the system, the empty building business rates relief can continue to be a valuable tool for revitalizing the local economy and reducing the number of vacant properties across the country.