Non domestic rates, also known as business rates, are a tax on commercial properties in the UK. These rates are charged by local authorities and are based on the rateable value of the property. Property owners are required to pay business rates whether the property is occupied or not. However, there are certain circumstances in which property owners may be eligible for non domestic rates empty property relief.
non domestic rates empty property relief, also referred to as business rates relief, is a government scheme designed to provide financial support to property owners who have vacant commercial properties. The aim of this relief is to incentivize property owners to bring their empty properties back into use, thus stimulating economic growth and regeneration in local areas.
There are two main types of non domestic rates empty property relief: automatic relief and discretionary relief. Automatic relief is provided to property owners for the first three months that a property is empty. After this initial period, property owners may be eligible for discretionary relief, which is granted at the discretion of the local authority.
In order to qualify for non domestic rates empty property relief, property owners must meet certain criteria. Properties must be completely unoccupied and not used for any business purposes in order to qualify for relief. It is important to note that properties undergoing refurbishment or redevelopment may still be eligible for empty property relief, provided that they are not being used for business activities during this time.
Property owners must also be able to demonstrate that they are actively seeking tenants for the property in order to qualify for relief. This may include providing evidence of marketing efforts, such as advertisements or listings on commercial property websites. Local authorities may request additional documentation to support the application for relief, so it is important for property owners to keep thorough records of their efforts to market the property.
It is worth noting that empty property relief is not automatically applied, and property owners must apply for relief directly to their local authority. The process for applying for relief may vary depending on the local authority, so property owners should contact their local council for more information on how to apply for non domestic rates empty property relief.
In some cases, local authorities may also have the discretion to grant additional relief to property owners who are experiencing financial hardship or other extenuating circumstances. This discretionary relief may be provided on a case-by-case basis, and property owners will need to provide evidence of their circumstances in order to qualify for additional relief.
While non domestic rates empty property relief can provide valuable financial support to property owners, it is important to note that relief is only temporary. In most cases, property owners will only be eligible for relief for a maximum of 12 months. After this period, property owners will be required to pay the full business rates on the property, regardless of whether it is still vacant.
Property owners should also be aware that local authorities have the power to charge a premium on empty properties that have been vacant for an extended period of time. This premium, known as the empty property premium, is intended to incentivize property owners to bring their empty properties back into productive use. The empty property premium is an additional charge on top of the standard business rates, and may vary depending on the length of time that the property has been vacant.
In conclusion, non domestic rates empty property relief can provide valuable financial support to property owners with vacant commercial properties. By incentivizing property owners to bring their empty properties back into use, this relief scheme can contribute to economic growth and regeneration in local areas. Property owners should familiarize themselves with the criteria for relief and the application process in order to take advantage of this valuable support.