non domestic rates empty property relief, also known as business rates empty property relief, is a scheme provided by the government to help alleviate the financial burden on businesses that are temporarily unable to occupy their commercial properties. Under this scheme, businesses are granted relief from paying non domestic rates (business rates) on empty properties for a certain period of time.
Business rates are taxes that are levied on non domestic properties, such as shops, offices, warehouses, and factories. These rates are based on the rateable value of the property, which is determined by the government’s Valuation Office Agency. When a property becomes empty, businesses are still required to pay business rates unless they qualify for empty property relief.
Empty property relief is intended to provide temporary financial assistance to businesses that are in the process of finding new tenants or carrying out repairs and renovations on their properties. By offering relief from business rates, the government aims to encourage businesses to bring empty properties back into productive use, thus boosting the economy and revitalizing local communities.
There are several types of empty property relief available to businesses, depending on the circumstances of the property and the business owner. The most common types of empty property relief include:
1. Mandatory relief: This type of relief is granted automatically to certain types of property, such as listed buildings, properties with a rateable value of less than £2,900, and properties owned by charities or community amateur sports clubs. These properties are entitled to 100% relief on their business rates for as long as they remain empty.
2. Discretionary relief: Businesses that do not qualify for mandatory relief may still be eligible for discretionary relief if they can demonstrate that they are actively seeking to let or sell the property. Local authorities have the discretion to grant relief on a case-by-case basis, and the amount and duration of relief may vary depending on the circumstances.
3. Hardship relief: Businesses that are facing financial hardship due to the empty property may be eligible for hardship relief. This type of relief is typically awarded to businesses that are struggling to pay their business rates and are unable to find a tenant or buyer for the property. Hardship relief is intended to provide temporary assistance until the business can stabilize its finances or find a new use for the property.
In addition to these types of relief, there are also specific schemes available for certain types of properties, such as industrial premises and rural businesses. These schemes may offer additional incentives or discounts to businesses that fall within these categories.
It is important for businesses to understand the eligibility criteria and application process for empty property relief in order to take advantage of this scheme. Businesses should contact their local council or visit the government’s website for more information on how to apply for relief and what documentation may be required.
In some cases, businesses may also be required to pay a reduced rate of business rates on empty properties, known as the empty property rate. This rate is typically set at 50% of the normal business rates and applies to properties that have been empty for more than three months (six months for industrial properties). The empty property rate is intended to provide an incentive for businesses to bring empty properties back into use as quickly as possible.
Overall, non domestic rates empty property relief is a valuable scheme that can help businesses save money and alleviate the financial burden of empty properties. By taking advantage of this relief, businesses can focus on finding new tenants, carrying out repairs and renovations, and ultimately bringing their properties back into productive use. Businesses should make sure to explore all available options for relief and seek assistance from their local council or a professional advisor if needed.