non domestic rates empty property relief, often referred to as simply empty property relief, is a valuable opportunity for property owners to reduce or eliminate their business rates liability on unoccupied premises. This relief is designed to provide some financial relief to landlords and business owners who find themselves with vacant properties.
In the UK, non-domestic rates, also known as business rates, are a tax on non-residential property used for commercial purposes. Business rates are based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). Property owners are required to pay business rates whether the property is occupied or not, which can be a significant financial burden for those with empty properties.
However, the government recognizes that there are circumstances in which property owners are unable to find tenants or are in the process of renovating or redeveloping their properties. In these cases, empty property relief can provide much-needed financial assistance by reducing or eliminating the business rates liability on vacant properties.
There are several scenarios in which property owners may be eligible for non domestic rates empty property relief. The most common scenario is when a property is undergoing renovation or structural repairs. In these cases, property owners may be eligible for a full exemption from business rates for a period of up to 12 months. This can provide property owners with the financial breathing room they need to make necessary repairs and improvements to their properties.
Another common scenario in which property owners may be eligible for empty property relief is when a property is actively being marketed for rent or sale. Property owners must provide evidence to the local council that they are actively seeking tenants or buyers for the property in order to qualify for this relief. If approved, property owners may be eligible for a full exemption from business rates for up to 3 months.
It is important for property owners to be aware that empty property relief is not automatically granted. Property owners must apply for the relief through their local council and provide evidence to support their claim. This may include proof of renovation works, marketing materials, or other documentation demonstrating the need for empty property relief.
In some cases, property owners may also be eligible for a partial exemption from business rates if the property has been vacant for an extended period of time. For example, properties that have been vacant for more than 3 months may be eligible for a 50% discount on business rates. This can provide some relief to property owners who are struggling to find tenants or buyers for their properties.
It is important for property owners to be proactive in seeking out empty property relief if they believe they may be eligible. By working with their local council and providing the necessary evidence, property owners can significantly reduce their business rates liability on vacant properties.
In addition to empty property relief, property owners may also be eligible for other forms of business rates relief, such as small business rates relief or rural rate relief. It is important for property owners to explore all of their options and take advantage of any relief programs for which they may qualify.
Overall, non domestic rates empty property relief is a valuable opportunity for property owners to reduce their business rates liability on vacant properties. By providing financial assistance to property owners in difficult circumstances, empty property relief helps to support the viability of businesses and promote economic growth. Property owners should be proactive in seeking out empty property relief and exploring all of their options for reducing their business rates liability on unoccupied premises.