Non domestic rates, also known as business rates, are taxes that businesses in the UK have to pay on non-domestic properties. These rates are calculated based on the rateable value of a property and are used to fund local services such as schools, roads, and policing. However, when a non-domestic property is empty, businesses can apply for empty property relief to reduce or eliminate the amount of non domestic rates they have to pay. This relief is designed to help businesses cope with the financial burden of owning vacant properties and encourage landlords to bring vacant properties back into use.
non domestic rates empty property relief, commonly referred to as just empty property relief, is available to all non-domestic properties that are empty for a certain period of time. The amount of relief that a business can claim depends on the type of property and how long it has been empty. Generally, businesses can claim 100% relief for the first three months that a property is empty, 50% relief for the next three months, and no relief after six months. Some properties, such as industrial properties and properties undergoing repairs or structural alterations, may be eligible for extended periods of relief.
To qualify for empty property relief, businesses must notify their local council when a property becomes empty. This notification triggers the start of the relief period and the council will reassess the rateable value of the property to determine the amount of relief that can be claimed. Businesses must also provide evidence that the property is genuinely empty and not being used for any business activities. This can include photographs, utility bills, and council tax records.
Empty property relief is not automatic and businesses must apply for it through their local council. The application process can vary depending on the council, but generally involves submitting information about the property, the reasons for it being empty, and any plans to bring it back into use. Once an application has been submitted, the council will review it and make a decision on whether to grant relief. Businesses should keep in mind that relief is not guaranteed and councils may refuse applications if they believe that the property is not genuinely empty or the business is not actively trying to bring it back into use.
In addition to empty property relief, businesses that own multiple empty properties may also be eligible for additional relief. This can include a discount on the non-domestic rates for each additional empty property or a reduction in the overall rateable value of the properties. This additional relief is intended to help businesses that own multiple properties cope with the financial burden of having multiple vacancies.
Empty property relief can provide significant financial benefits to businesses that own non-domestic properties. By reducing or eliminating the amount of non-domestic rates that need to be paid on empty properties, businesses can save money and focus on bringing the properties back into use. This can be especially important for small businesses or landlords who may struggle to cover the costs of owning empty properties without rental income.
However, it is important for businesses to be aware of the rules and regulations surrounding empty property relief. Businesses that abuse the relief system by falsely claiming relief on properties that are not genuinely empty could face penalties and fines. It is important for businesses to keep accurate records of their empty properties and be prepared to provide evidence to support their relief applications.
Overall, non domestic rates empty property relief can be a valuable tool for businesses that own non-domestic properties. By providing relief on empty properties, businesses can save money and potentially bring properties back into use more quickly. However, businesses must be aware of the rules and regulations surrounding the relief and be prepared to provide evidence to support their applications. With proper planning and documentation, businesses can take advantage of empty property relief to help alleviate the financial burden of owning vacant properties.