non domestic rates empty property relief, also known as business rates relief, is a topic that is often misunderstood by property owners and businesses alike. This relief is designed to provide a temporary reduction or exemption from business rates for certain types of commercial properties that are empty or unused. In this article, we will delve deeper into what non domestic rates empty property relief entails and how it can benefit property owners.
First and foremost, it is important to understand what non domestic rates are. Non domestic rates, also known as business rates, are taxes that are levied on commercial properties in the UK. These rates are calculated based on the rental value of the property and are a significant expense for property owners. When a commercial property becomes empty or unused, property owners are still required to pay business rates unless they qualify for empty property relief.
Empty property relief provides a temporary relief from paying business rates on a property that is empty and not being used for any business purposes. This relief is meant to alleviate the financial burden on property owners who are unable to find tenants for their commercial properties. The length of time for which empty property relief is granted varies depending on the location and type of property. In most cases, the relief is granted for a period of three or six months, but this can be extended in certain circumstances.
There are several conditions that must be met in order to qualify for non domestic rates empty property relief. The property must be entirely unoccupied and not used for any business purposes during the relief period. Additionally, the property must not be a domestic property, such as a residential property or a property used solely for storage purposes. Property owners must also be able to provide evidence that they have made reasonable efforts to market the property for rent or sale during the relief period.
It is important to note that there are different types of empty property relief available to property owners. The most common type of relief is called the empty property rate relief, which provides a 100% reduction in business rates for the first three or six months that the property remains empty. After this initial relief period, the property may qualify for a further 10% reduction in business rates for up to another six months, depending on certain criteria being met.
Another type of empty property relief is the newly built empty property relief, which provides a 100% reduction in business rates for newly constructed commercial properties that have not yet been occupied. This relief is granted for a period of up to 18 months, giving property owners ample time to find tenants for their newly built properties. Property owners must apply for this relief within six months of the property being completed in order to qualify.
It is important for property owners to be aware of the deadlines and requirements for applying for non domestic rates empty property relief. Failure to apply for relief within the specified time frame may result in the property owner being liable for the full amount of business rates. Property owners should also keep detailed records of their efforts to market the property for rent or sale, as this information may be required when applying for relief.
In conclusion, non domestic rates empty property relief is a valuable resource for property owners who are struggling to find tenants for their commercial properties. By providing temporary relief from business rates, this relief can help alleviate the financial burden on property owners and give them the time they need to secure tenants for their properties. Property owners should familiarize themselves with the eligibility criteria and application process for empty property relief in order to take advantage of this valuable resource.