Non domestic rates, also known as business rates, are a form of taxation that businesses in the UK are required to pay on their non-domestic properties. However, there are instances when businesses have empty properties that are not being used for any commercial purposes. In such cases, businesses may be eligible for non domestic rates empty property relief.
non domestic rates empty property relief is a government scheme that provides businesses with relief from paying business rates on properties that are empty. This relief is aimed at helping businesses that are facing financial difficulties or are unable to use their properties for commercial purposes.
There are different types of empty property relief available to businesses, depending on their circumstances. The main types of relief include:
1. Property that is empty for less than three months: If a property is empty for less than three months, the business owner is still required to pay the full amount of business rates. This is to discourage businesses from leaving their properties empty for extended periods of time.
2. Property that is empty for three months or more: If a property is empty for three months or more, businesses may be eligible for 100% relief on their business rates for the first three months. After the initial three-month period, the relief amount may be reduced to 50%.
3. Industrial and warehouse properties: Industrial and warehouse properties are often subject to higher business rates due to their size and location. However, businesses that own empty industrial or warehouse properties may be eligible for 100% relief on their business rates for a specified period. This is to encourage businesses to make use of these properties and bring them back into productive use.
4. Listed buildings: Listed buildings are historic properties that are protected by law. Businesses that own empty listed buildings may be eligible for 100% relief on their business rates for as long as the property remains empty. This is to help preserve these historic buildings and prevent them from falling into disrepair.
5. Properties undergoing essential repair works: If a property is empty because it is undergoing essential repair works, businesses may be eligible for 100% relief on their business rates for a specified period. This is to support businesses in maintaining their properties and ensuring they remain in good condition.
In order to qualify for non domestic rates empty property relief, businesses must meet certain criteria set out by the government. These criteria may include providing evidence of the property being empty, demonstrating the reasons for the property being empty, and submitting a valid application for relief.
It is important for businesses to keep track of the deadlines for submitting applications for empty property relief, as missing the deadline may result in the business being required to pay the full amount of business rates. Businesses should also be prepared to provide any necessary documentation to support their application for relief.
It is worth noting that non domestic rates empty property relief is not automatic, and businesses must actively apply for relief in order to benefit from it. Business owners are encouraged to seek advice from their local council or a professional advisor to ensure they meet the eligibility criteria and submit a successful application.
In conclusion, non domestic rates empty property relief is a valuable scheme that can provide much-needed financial support to businesses that own empty properties. By taking advantage of this relief, businesses can reduce their financial burden and focus on bringing their properties back into use for commercial purposes. Businesses are encouraged to explore their options for empty property relief and take action to apply for relief where appropriate.