Non domestic rates, also known as business rates, are taxes that are levied on commercial properties in the UK. These rates are charged by local authorities and are used to fund local services such as police, fire, education, and transportation. One aspect of non domestic rates that many property owners may not be aware of is empty property relief.
Empty property relief is a temporary reduction in non domestic rates that is granted to property owners when their commercial property becomes empty and unoccupied. This relief is designed to help property owners who are struggling to find tenants or are in the process of refurbishing their property. It provides financial assistance during periods when a property is generating no income.
There are several types of empty property relief that property owners can apply for depending on the circumstances of their property. The most common types of empty property relief include:
1. Mandatory relief: This relief is automatically granted to commercial properties that have become empty and unoccupied for a certain period of time. In most cases, properties are eligible for mandatory relief for the first three months that they are empty. After the initial three month period, property owners will need to apply for further relief if their property remains unoccupied.
2. Discretionary relief: This relief is granted at the discretion of the local authority and is intended to provide additional support to property owners who are struggling to find tenants or are facing financial difficulties. Property owners must apply for discretionary relief and provide evidence of their circumstances in order to be considered for this type of relief.
3. Hardship relief: This relief is available to property owners who are experiencing financial hardship and are unable to pay their non domestic rates. Property owners must provide evidence of their financial situation and demonstrate that they are actively trying to rent out or sell their property in order to qualify for hardship relief.
It’s important for property owners to be aware of the different types of empty property relief that are available to them and to understand the eligibility criteria for each type of relief. By taking advantage of empty property relief, property owners can reduce their financial burden and potentially avoid falling into debt.
In addition to providing financial assistance to property owners, empty property relief also helps to ensure that commercial properties do not remain empty for extended periods of time. By incentivizing property owners to actively seek tenants or make improvements to their property, empty property relief ultimately benefits the local economy and community.
Property owners should be aware that empty property relief is only available for a limited period of time and may be subject to certain conditions. For example, property owners may be required to provide evidence that they are actively trying to rent out or sell their property in order to qualify for relief. Additionally, property owners must inform their local authority when their property becomes empty in order to receive relief.
Overall, non domestic rates empty property relief is an important resource for property owners who are struggling to find tenants or are facing financial difficulties. By understanding the different types of relief that are available and meeting the eligibility criteria, property owners can benefit from reduced non domestic rates and financial assistance during periods of property vacancy.