Non domestic rates, commonly known as business rates, are taxes imposed on commercial properties in the UK. These rates are calculated based on the rateable value of the property and are used to fund local services provided by the local authority. However, not all commercial properties are occupied all the time, and during these periods of vacancy, property owners 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 relief to property owners who have vacant commercial properties. The relief aims to ease the financial burden on property owners and encourage the occupation of empty properties. In this article, we will explore how non domestic rates empty property relief works and who is eligible to apply for it.
The non domestic rates empty property relief scheme allows property owners to claim relief on their business rates for a set period of time while the property remains empty. The amount of relief varies depending on the type of property and the local authority’s policies. Some local authorities offer full relief for a certain period, while others may provide only a partial discount.
To be eligible for non domestic rates empty property relief, the property must meet certain criteria. Firstly, the property must be unoccupied and substantially unfurnished. This means that the property should not be used or occupied by any persons and should not contain any furniture or equipment that is essential for the property to be used for its intended purpose.
Additionally, the property must be capable of occupation for business purposes. This means that the property should be in a state of repair that allows it to be used for its intended commercial purpose. If the property is not in a suitable condition for occupation, it may not be eligible for empty property relief.
It is important for property owners to be aware of the time limits associated with non domestic rates empty property relief. In most cases, the relief is provided for a period of three months from the date the property becomes vacant. After this initial period, the property owner may still be eligible for relief, but they will need to apply to the local authority for an extension.
Property owners should also be aware of the changes to the empty property relief scheme introduced by the government in recent years. In 2017, the government announced that empty properties with a rateable value of more than £2,900 would no longer be eligible for empty property relief. This decision was made in an effort to encourage property owners to occupy their properties and contribute to the local economy.
Despite this change, there are still ways for property owners to reduce their non domestic rates liability for empty properties. One option is to apply for exemptions or discretionary relief from the local authority. Exemptions may be granted in certain circumstances, such as when a property is undergoing major repairs or renovations. Discretionary relief may be granted on a case-by-case basis, depending on the circumstances of the property and the property owner.
It is important for property owners to understand the implications of leaving their commercial properties empty. In addition to the financial burden of paying business rates on vacant properties, there are other risks associated with leaving properties unoccupied. Empty properties are more susceptible to vandalism, squatting, and other forms of damage, which can result in additional costs for the property owner.
In conclusion, non domestic rates empty property relief is a valuable scheme that provides financial relief to property owners with vacant commercial properties. By understanding the criteria for eligibility and the time limits associated with the scheme, property owners can take advantage of this relief and reduce their business rates liability. It is important for property owners to be proactive in applying for relief and to consider the implications of leaving properties empty. With the right approach, property owners can effectively manage their vacant properties and contribute to the local economy.