As a property owner, one of the challenges you may face is dealing with void periods – periods when your property is vacant and not generating any rental income. During these times, you still have to pay certain expenses, such as maintenance costs and property taxes. However, there is an option available to help alleviate some of the financial burden that comes with void periods – void rates relief.
Void rates relief is a government initiative designed to provide financial relief to property owners during periods of vacancy. It is an important tool that can help property owners manage their costs and stay afloat during difficult times. In this article, we will discuss what void rates relief is, how it works, and how you can apply for it.
What is void rates relief?
Void rates relief is a scheme that allows property owners to apply for a reduction in their business rates during periods of vacancy. Business rates are taxes that property owners have to pay on non-residential properties, such as shops, offices, and warehouses. These rates are calculated based on the rateable value of the property and are used to fund local services, such as schools and roads.
During void periods, property owners are still required to pay business rates, even though the property is not generating any income. Void rates relief is intended to help property owners during these difficult times by reducing the amount of business rates they have to pay.
How Does void rates relief Work?
Void rates relief works by allowing property owners to apply for a reduction in their business rates for properties that are vacant for a certain period of time. The length of the void period required to qualify for void rates relief varies depending on the local authority, but it is typically around three months.
To qualify for void rates relief, property owners must provide evidence that the property is genuinely empty and not being used for any commercial purposes. This can include providing details of the void period, evidence of efforts to re-let the property, and proof that the property is not being used for storage or any other purposes.
Once the local authority has verified the information provided, they will calculate the amount of void rates relief that the property owner is entitled to. This amount will be deducted from the property owner’s next business rates bill, providing some much-needed financial relief during the void period.
How to Apply for void rates relief
Applying for void rates relief is a relatively straightforward process, but it is important to ensure that you provide all the necessary information to support your application. The first step is to contact your local authority and inform them that your property is vacant and that you wish to apply for void rates relief.
You will need to provide details of the void period, including the date that the property became vacant and any efforts you have made to re-let the property. You may also be required to provide evidence, such as utility bills or photographs, to support your application.
Once the local authority has received all the necessary information, they will assess your application and calculate the amount of void rates relief that you are entitled to. This amount will then be deducted from your next business rates bill, providing you with some financial relief during the void period.
In conclusion, void rates relief is an important scheme that can help property owners manage their costs during periods of vacancy. By applying for void rates relief, property owners can reduce the financial burden of paying business rates on empty properties and stay afloat during difficult times. If you are a property owner facing a void period, it is worth exploring void rates relief as a way to alleviate some of the financial pressure you may be experiencing.