non domestic rates empty property relief, also known as business rates relief, is a government scheme designed to provide financial assistance to businesses that own vacant properties. The relief aims to alleviate the burden of paying business rates on empty buildings, encouraging landlords to bring their properties back into use and prevent them from becoming eyesores in the community.
Business rates are a form of tax that commercial property owners must pay to the local council. The amount of rates payable is based on the rateable value of the property, which is assessed by the Valuation Office Agency. In England, Wales, and Scotland, businesses are required to pay rates on their properties regardless of whether they are occupied or vacant.
However, non domestic rates empty property relief allows landlords to claim a partial or full exemption from paying rates on their empty buildings for a specified period of time. This relief can be a valuable lifeline for businesses that are struggling financially, as it reduces their operating costs and gives them time to find a new tenant or buyer for their property.
There are several different types of non domestic rates empty property relief available, each with its own eligibility criteria and application process. The most common forms of relief include:
1. Small business rates relief: This provides a 100% exemption from rates for properties with a rateable value below a certain threshold. Small businesses can claim this relief for up to 12 months if their property is empty.
2. Empty property rate relief: This offers a 100% exemption from rates for all properties that are unoccupied for a specified period of time. In England, this period is usually three months for industrial properties and six months for all other properties.
3. Charitable rate relief: Charities and non-profit organizations can claim a 80% discount on their rates bill for properties that are empty and held for charitable purposes.
4. Listed buildings relief: Owners of listed buildings can apply for a 100% exemption from rates if their property is empty. This relief is aimed at encouraging the preservation of historic buildings that may be difficult to find tenants for.
To apply for non domestic rates empty property relief, landlords must submit an application to their local council detailing the reasons why their property is empty and how long they expect it to remain vacant. The council will then review the application and make a decision on whether to grant relief based on the information provided.
It is important for landlords to keep the council informed of any changes in the status of their property, such as finding a new tenant or selling the building. Failure to do so could result in the relief being revoked and the landlord being required to pay backdated rates.
While non domestic rates empty property relief can provide much-needed financial assistance to businesses, it is not a long-term solution to the problem of vacant properties. Landlords should take proactive steps to bring their buildings back into use, such as marketing the property to potential tenants, carrying out renovations or repairs, and considering different uses for the building.
In some cases, landlords may choose to apply for a change of use for their property to make it more attractive to tenants or buyers. For example, a retail unit that has been empty for an extended period of time could be converted into residential apartments or office space to generate rental income.
Overall, non domestic rates empty property relief can be a valuable tool for businesses that are struggling to find tenants for their properties. By taking advantage of the relief scheme, landlords can reduce their financial burden and give themselves time to find a suitable solution for their empty buildings. However, it is important for landlords to proactively seek new tenants or buyers for their properties to avoid relying on relief as a long-term strategy.