non domestic rates empty property relief, also known as business rates relief, is a system designed to provide financial support to businesses that own or occupy commercial properties that are unoccupied or unused. The relief is intended to help alleviate the financial burden for businesses that may be struggling due to vacant properties.
When a commercial property becomes empty, the business owner or tenant is still required to pay non domestic rates, also known as business rates, on the property unless they qualify for empty property relief. The rates are a tax based on the rateable value of the property and are payable to the local council.
The empty property relief scheme was introduced to provide some relief for businesses that are unable to generate income from their property due to it being vacant. This can be due to a variety of reasons such as refurbishment, lack of demand in the local market, or the business owner simply not being able to find a tenant.
Business rates can be a significant cost for businesses, especially those that are struggling financially. The relief scheme is designed to provide some temporary relief by either reducing or completely exempting the business from paying rates on their empty property.
There are different types of empty property relief available, depending on the circumstances of the property and the business owner. The most common types of relief include:
1. Mandatory Relief: This type of relief is automatically granted to businesses for the first three months that a property is empty. After the initial three-month period, the business owner must apply for further relief if the property remains unoccupied.
2. Hardship Relief: Businesses that are experiencing financial hardship may qualify for additional relief beyond the initial three-month period. To qualify for hardship relief, the business owner must demonstrate that they are facing financial difficulties due to the empty property.
3. Retail Relief: Retail properties that have been empty for a certain period may be eligible for retail relief, which provides additional relief on top of the standard empty property relief. This is designed to encourage the occupation of retail properties in areas where there is a high vacancy rate.
4. Enterprise Zone Relief: Properties located within designated enterprise zones may qualify for additional relief to encourage economic growth and investment in the area.
It is important for business owners to be aware of the different types of relief available and to apply for relief as soon as their property becomes vacant. Failure to apply for relief could result in the business being liable for paying rates on their empty property.
Business owners should also be aware of the time limits for empty property relief. In most cases, relief is only granted for a limited period of time, after which the business owner must reapply or begin paying rates on the property.
It is also important for businesses to keep accurate records of the reasons for the property being empty and any efforts made to find a tenant or occupier. This information may be required when applying for relief and can help to demonstrate that the property is genuinely vacant.
In conclusion, non domestic rates empty property relief can provide valuable financial support for businesses that own or occupy commercial properties that are vacant. By understanding the different types of relief available and meeting the eligibility criteria, businesses can reduce the financial burden of paying rates on their empty property. It is important for business owners to be proactive in applying for relief and to keep accurate records to support their application.