Non domestic rates, also known as business rates, are taxes imposed on most non-domestic properties in the UK. These rates are collected by local authorities to help fund public services and infrastructure. The amount of business rates a property owner must pay is based on the rateable value of the property, which is determined by the Valuation Office Agency. However, when a non-domestic property is empty, the property owner may be eligible for empty property relief.
Empty property relief is a relief scheme that allows property owners to receive a reduction in their non domestic rates if their property is empty. This relief can be a valuable financial benefit for property owners, as they may still be responsible for other costs associated with owning a property, such as maintenance and insurance, even when it is unoccupied.
There are several types of empty property relief available to non-domestic property owners. The most common type of relief is the 100% relief, which provides a full exemption from business rates for a certain period of time. In general, properties are eligible for 100% relief for the first three months they are empty. After this initial period, the relief may be extended for certain types of properties, such as industrial properties, which may be eligible for up to a further three months of relief.
In addition to the 100% relief, there is also a 50% relief available for certain types of properties. This relief provides a 50% reduction in business rates for properties that have been empty for more than three months. However, it is important to note that not all properties are eligible for this relief, and there are certain criteria that must be met in order to qualify.
One of the key criteria for empty property relief is that the property must be genuinely empty. This means that the property cannot be in use or occupied, even on a temporary basis. For example, if a property is being used for storage or if a tenant is in the process of moving in, it may not be eligible for empty property relief. Property owners must provide evidence to the local authority to prove that the property is genuinely empty in order to qualify for relief.
Another important criterion for empty property relief is that the property must be in rateable occupation. This means that the property must be capable of being assessed for business rates, even if it is currently empty. Properties that are exempt from business rates, such as agricultural land or buildings used for charitable purposes, are not eligible for empty property relief.
It is also worth noting that some types of properties may be subject to different rules and regulations regarding empty property relief. For example, properties that are in the process of being renovated or refurbished may be eligible for relief under certain circumstances. Property owners should consult with their local authority to determine if they qualify for relief based on their specific circumstances.
In addition to the financial benefits of empty property relief, there are also other advantages for property owners who take advantage of this scheme. For example, having a property empty for an extended period of time can have a negative impact on the surrounding area, as it may become derelict or attract antisocial behavior. By receiving relief on their business rates, property owners may be more incentivized to maintain and secure their properties, which can benefit the overall community.
In conclusion, non domestic rates empty property relief is a valuable scheme that provides financial benefits to property owners whose properties are empty. By understanding the criteria and regulations surrounding this relief, property owners can take advantage of this scheme to reduce their business rates and alleviate some of the financial burden associated with owning an empty property. If you are a property owner with an empty non-domestic property, be sure to consult with your local authority to see if you qualify for empty property relief.