Non domestic rates, commonly known as business rates, are taxes imposed on non domestic properties in the UK. These rates are determined by the rateable value of the property and are used to fund local services provided by the government. However, there are instances when a property is empty and not generating any income for the owner. In such cases, the owner may be eligible for non domestic rates empty property relief.
non domestic rates empty property relief is a scheme introduced by the government to provide financial assistance to property owners who have empty properties. The relief allows owners to apply for a reduction or complete exemption from paying business rates on their empty properties for a certain period of time.
There are different types of empty property relief available to property owners, depending on the specific circumstances. The most common types of relief include:
1. 100% relief for the first three months: Property owners are granted a complete exemption from paying business rates on their empty properties for the first three months after the property becomes vacant.
2. 50% relief for the next three months: After the initial three-month period, property owners can apply for a 50% reduction in their business rates for the next three months.
3. Properties with a rateable value below £2,900: Properties with a rateable value below £2,900 are eligible for 100% relief as long as they remain empty.
4. Industrial and warehouse properties: Industrial and warehouse properties are eligible for 100% relief for the first six months and 50% relief for the next three months.
It is important to note that each local authority has its own criteria for granting empty property relief, so property owners should check with their local council to see if they qualify for the relief.
In order to apply for non domestic rates empty property relief, property owners must provide evidence that the property is genuinely empty and not being used for any commercial purposes. This may include photographs of the empty property, utility bills showing no usage, and a signed declaration from the property owner.
Once the application is approved, property owners will receive a revised business rates bill indicating the relief that has been granted. It is important for property owners to keep track of when the relief expires so that they can resume paying business rates when the relief period ends.
There are some restrictions to non domestic rates empty property relief. For example, properties that are being refurbished or undergoing structural alterations may not qualify for the relief. Additionally, properties that are being used for storage purposes or any other commercial activity, even if they appear empty, may not be eligible for the relief.
It is also worth noting that the government has made changes to the empty property relief scheme over the years in an effort to discourage property owners from leaving their properties empty for long periods of time. These changes include reducing the length of the relief period and imposing stricter criteria for eligibility.
In conclusion, non domestic rates empty property relief is a valuable scheme that provides financial assistance to property owners with empty properties. By taking advantage of this relief, property owners can reduce their financial burden and potentially attract new tenants to their properties. Property owners should carefully review the criteria for the relief and apply for it if they meet the requirements. Ultimately, non domestic rates empty property relief benefits both property owners and the local government by helping to stimulate economic activity and reduce the number of empty properties in the UK.