Non domestic rates, also known as business rates, are taxes paid on non-domestic properties in the UK. These rates are charged by local authorities to businesses, public sector bodies, and individuals who own non-domestic properties such as shops, offices, factories, and warehouses. However, there is a relief scheme in place for empty properties known as non domestic rates empty property relief.
Empty property relief is a scheme that provides relief from non domestic rates for certain types of empty properties. The relief is intended to help property owners who are experiencing financial hardship due to their property being vacant. It is worth noting that not all properties are eligible for empty property relief, and there are specific criteria that must be met in order to qualify.
One of the key requirements for empty property relief is that the property must be wholly unoccupied. This means that there cannot be any individuals or businesses using the property for any purpose. Additionally, the property must also be capable of beneficial use, which means that it must be in a condition where it could be rented out or used for some other purpose.
There are several types of empty property relief available, each with its own criteria and conditions. The most common type of relief is the 3-month exemption, which provides relief from non domestic rates for the first three months that a property is empty. This is designed to give property owners a grace period to find a new tenant or occupier for their property.
After the initial three-month exemption period, property owners may be eligible for further relief depending on the circumstances. For example, properties that are undergoing refurbishment or structural repairs may qualify for extended relief. There is also a hardship relief scheme available for property owners who are experiencing financial difficulties and are struggling to pay their non domestic rates.
It is important for property owners to be aware of the specific criteria and conditions for each type of empty property relief in order to ensure that they are eligible. Failure to meet the requirements could result in the property owner being liable for the full amount of non domestic rates, even if the property is empty.
In some cases, property owners may be eligible for empty property relief even if the property is only partially vacant. For example, if a property has multiple units and only one unit is vacant, the property owner may still be able to claim relief for that unit. However, it is essential to check with the local authority to confirm eligibility and determine the amount of relief that may be available.
Empty property relief is not automatic, and property owners must apply to their local authority in order to claim relief. The application process typically involves providing evidence of the property’s vacancy and meeting any other requirements set out by the local authority. Property owners should also be aware that empty property relief is not permanent and may be subject to review or re-assessment by the local authority.
In conclusion, non domestic rates empty property relief is a valuable scheme that can provide much-needed financial assistance to property owners whose properties are vacant. By understanding the criteria and conditions for relief, property owners can take advantage of the scheme and avoid paying the full amount of non domestic rates on their empty properties. It is essential to stay informed and up to date on the eligibility requirements in order to make the most of this relief scheme.