Non domestic rates, also known as business rates, are taxes paid on non residential properties in the United Kingdom. These rates are based on the rateable value of a property and are used to fund local services. However, when a non domestic property becomes vacant, owners may be eligible for empty property relief. This relief can provide significant savings for property owners, but there are specific rules and criteria that must be met to qualify.
Empty property relief is a government scheme designed to provide financial assistance to property owners who are experiencing difficulties in letting out their non domestic properties. The relief is intended to incentivize property owners to bring vacant properties back into use, thereby revitalizing the local economy and community.
In order to qualify for empty property relief, a non domestic property must meet certain criteria. The property must be unoccupied and have been so for a minimum period of time, which varies depending on the specific circumstances. Additionally, the property must have been used for a qualifying purpose before becoming vacant.
There are different types of empty property relief available to property owners, including:
1. Full Empty Property Relief: This relief provides a 100% exemption from non domestic rates for a specified period of time. The length of time for which this relief is granted varies depending on the specific circumstances of the property.
2. Partial Empty Property Relief: This relief provides a reduced rate of non domestic rates for vacant properties. The amount of relief granted will be determined based on the rateable value of the property and the length of time it has been vacant.
3. Listed Building Relief: This relief provides a 100% exemption from non domestic rates for buildings that are listed and are undergoing repair or restoration. This relief is intended to encourage the preservation of historic buildings.
It is important to note that empty property relief is not automatic and property owners must apply for the relief through their local council. In order to qualify for the relief, property owners must provide evidence that the property meets the eligibility criteria and that efforts are being made to bring the property back into use.
While empty property relief can provide significant savings for property owners, there are also potential drawbacks to consider. For example, if a property owner receives empty property relief and then fails to bring the property back into use within a certain period of time, they may be required to pay additional charges or penalties.
Additionally, there have been criticisms of empty property relief, with some arguing that it can incentivize property owners to keep properties vacant in order to avoid paying non domestic rates. In response to these concerns, the government has implemented changes to the empty property relief scheme to address these issues and ensure that relief is only provided to property owners who genuinely need it.
In conclusion, non domestic rates empty property relief can provide valuable financial assistance to property owners who are experiencing difficulties in letting out their properties. By understanding the eligibility criteria and requirements for the relief, property owners can take advantage of this scheme to bring vacant properties back into use and contribute to the local economy. However, it is important for property owners to be aware of the potential drawbacks of empty property relief and to comply with the rules and regulations set out by the government.