Non domestic rates, also known as business rates, are taxes that businesses in the UK must pay on their properties. These rates are calculated based on the rateable value of the property and can be a significant cost for businesses, especially during challenging economic times. However, there are relief schemes available to help businesses reduce their non domestic rates, including empty property relief.
Empty property relief is a scheme designed to provide financial support to businesses that have vacant properties. When a property becomes empty, the business owner is typically still required to pay non domestic rates on the property. However, empty property relief can help to alleviate some of this financial burden by providing relief on the rates that would otherwise be due.
There are different types of empty property relief available, depending on the circumstances of the property and the business. The main types of relief include:
1. 100% empty property relief: This relief is available for empty industrial properties and warehouses. Businesses that own these types of properties can apply for 100% relief on their non domestic rates for a period of up to three months. After this initial period, the relief may be extended at the discretion of the local council.
2. Partial empty property relief: This relief is available for other types of empty properties, such as offices, shops, and pubs. Businesses that own these properties can apply for relief of up to 50% on their non domestic rates for a period of up to six months. Again, the relief may be extended beyond this initial period.
It’s important to note that empty property relief is not automatic. Business owners must apply to their local council for the relief, providing details of the property and the reasons why it is empty. The council will then assess the application and determine whether the business is eligible for relief.
In some cases, businesses may also be eligible for discretionary relief on their non domestic rates if they are experiencing financial hardship. This relief is not specific to empty properties, but can provide additional support to businesses struggling to pay their rates.
Empty property relief can provide significant savings for businesses, particularly during times when the property market is slow and vacancies are high. By taking advantage of this relief, businesses can reduce their overhead costs and improve their financial stability.
In addition to providing financial relief, empty property relief can also help to stimulate economic growth. By reducing the costs associated with owning vacant properties, businesses are more likely to invest in improving and occupying these properties. This, in turn, can create jobs, attract new businesses, and revitalize local economies.
For businesses that are considering applying for empty property relief, it’s important to understand the guidelines and requirements set out by the local council. Each council may have different criteria for granting relief, so it’s essential to research the specific requirements in your area before submitting an application.
In conclusion, non domestic rates empty property relief can be a valuable resource for businesses looking to reduce their overhead costs and improve their financial stability. By understanding the different types of relief available and the application process, businesses can maximize their savings and take advantage of this valuable support. If you own a vacant property, consider exploring the options for empty property relief to see how it can benefit your business and your bottom line.