Non domestic rates, commonly known as business rates, are taxes imposed by local authorities on non domestic properties such as commercial buildings, offices, warehouses, and shops. Property owners are generally required to pay these rates, which are calculated based on the rateable value of the property. However, there are instances where property owners may be eligible for relief from these rates, particularly in the case of empty properties.
Empty property relief is a scheme designed to provide financial assistance to property owners who are struggling to find tenants for their non domestic properties. This relief is intended to ease the burden of paying business rates on properties that are not generating any income. The relief can be granted for a limited period of time, allowing property owners the opportunity to market their properties effectively and find suitable tenants.
There are different types of empty property relief available to property owners, depending on the circumstances of the property. One common type of relief is the Small Business Rates Relief (SBRR) scheme, which provides relief to small business owners who occupy only one property and meet certain criteria. Under SBRR, eligible property owners may be entitled to a discount on their business rates, easing the financial burden of operating a small business.
Another type of relief is the Transitional Empty Property Relief (TEPR) scheme, which provides relief to property owners whose properties have been empty for a certain period of time. TEPR aims to encourage property owners to bring their empty properties back into use by offering a percentage discount on their business rates. This scheme is particularly beneficial for property owners who are struggling to find tenants or are facing financial difficulties.
Property owners may also be eligible for Mandatory Empty Property Relief (MEPR) if their properties have been empty for a certain period of time. MEPR provides a 100% discount on business rates for the first three months that a property is empty. After the initial three-month period, the discount is reduced to 10%, gradually decreasing over time. This scheme is designed to incentivize property owners to actively seek tenants for their empty properties and prevent properties from remaining vacant for extended periods.
In addition to these relief schemes, property owners may also be eligible for discretionary relief from their business rates. Discretionary relief is granted on a case-by-case basis, taking into account the financial circumstances of the property owner and the reasons why the property is empty. Local authorities have the discretion to provide relief to property owners who are facing exceptional circumstances or financial hardship.
It is important for property owners to be aware of the various types of empty property relief schemes available to them and to understand the eligibility criteria for each scheme. By taking advantage of these relief schemes, property owners can alleviate the financial burden of paying business rates on empty properties and improve their chances of finding tenants.
In conclusion, non domestic rates empty property relief is a valuable scheme designed to support property owners who are struggling to find tenants for their non domestic properties. By offering discounts and incentives to property owners, these relief schemes aim to encourage property owners to bring their empty properties back into use and contribute to the local economy. Property owners should explore the different types of empty property relief available to them and take advantage of these schemes to ease the financial burden of paying business rates on empty properties.