Business rates can often be a significant financial burden for businesses, especially for those who own or lease commercial properties. However, one little-known relief that can help alleviate this burden is the empty building business rates relief. This relief is designed to incentivize property owners to bring vacant buildings back into productive use by providing them with a temporary exemption from paying business rates. In this article, we will explore the benefits of this relief and how it can help property owners make the most out of their investments.
empty building business rates relief, commonly referred to as EBRR, was introduced as part of the Localism Act 2011. The main aim of this relief is to reduce the financial strain on property owners who may be struggling to find tenants or buyers for their vacant buildings. By temporarily exempting these properties from paying business rates, the government hopes to encourage property owners to invest in their properties, thereby revitalizing local economies and boosting property values.
One of the key benefits of empty building business rates relief is that it can help property owners save a significant amount of money. Business rates can be a major expense, especially for large commercial properties, and the relief can provide much-needed financial breathing space for property owners who are struggling to find tenants. By taking advantage of this relief, property owners can redirect the funds they save on business rates towards making necessary repairs and improvements to their properties, making them more attractive to potential tenants or buyers.
Furthermore, Empty Building Business Rates Relief can also help property owners avoid potential financial penalties. In some cases, property owners may be subject to empty property rates if their buildings remain vacant for an extended period of time. These rates are often higher than standard business rates and can put a significant strain on property owners’ finances. By applying for EBRR, property owners can avoid these penalties and instead focus on finding a sustainable solution for their vacant buildings.
Another benefit of Empty Building Business Rates Relief is that it can help property owners attract potential tenants or buyers. Vacant buildings can be a major deterrent for businesses looking to set up shop in a new location, as they may be seen as unattractive or unsafe. By investing in their properties and taking advantage of the relief, property owners can make their buildings more appealing to potential occupants, thereby increasing the chances of finding tenants or buyers in the future.
Additionally, Empty Building Business Rates Relief can also have a positive impact on local communities. Vacant buildings can often become eyesores and magnets for anti-social behavior, which can have a detrimental effect on the surrounding area. By bringing these buildings back into use, property owners can help improve the overall appearance and safety of the neighborhood, making it a more desirable place to live and do business.
However, it is important to note that Empty Building Business Rates Relief is only available for a limited period of time. The relief typically lasts for up to three months for industrial properties and up to six months for all other types of properties. Property owners must apply for the relief through their local council and provide evidence that their building meets the eligibility criteria, such as being genuinely vacant and capable of occupation.
In conclusion, Empty Building Business Rates Relief can be a valuable tool for property owners looking to bring their vacant buildings back into use. By providing temporary financial relief and incentivizing property owners to invest in their properties, the relief can help revitalize local economies, attract potential tenants or buyers, and improve the overall appearance of neighborhoods. Property owners who are struggling to find tenants or buyers for their vacant buildings should consider applying for EBRR to unlock the benefits that this relief can offer.