non domestic rates empty property relief, also known as business rates relief, is a scheme provided by local councils in the United Kingdom to support businesses facing financial difficulties. This relief is offered to businesses that have empty properties, providing them with some financial assistance during challenging times. In this article, we will delve deeper into what non domestic rates empty property relief entails, how businesses can benefit from it, and what the eligibility criteria are.
Non domestic rates, also commonly referred to as business rates, are taxes that businesses in the UK pay on their commercial properties. These rates are calculated based on the rateable value of the property, which is determined by the government’s Valuation Office Agency. The rates are collected by local councils and are used to fund local services such as schools, roads, and waste management.
When a business property becomes vacant, the business is still required to pay business rates on the empty property unless they qualify for empty property relief. Empty property relief provides businesses with a temporary exemption from paying business rates on properties that are not being used for a business purpose. This relief can be crucial for businesses that are struggling financially or for those that are looking to refurbish or sell their property.
Businesses can apply for empty property relief for a maximum period of three months for most properties. Some properties may be eligible for longer periods of relief, depending on the specific circumstances. To qualify for empty property relief, businesses must demonstrate that the property is genuinely empty and not being used for any business purposes. They must also provide evidence to support their claim, such as utility bills, insurance documents, and photographs of the property.
Businesses that are eligible for empty property relief can receive a 100% exemption from paying business rates on their empty properties. This can provide businesses with significant savings and help alleviate some of the financial pressures they may be facing. However, it is essential for businesses to be aware that empty property relief is only a temporary solution, and they will be required to pay business rates again once the relief period expires.
In some cases, businesses may be eligible for additional support through discretionary rates relief schemes offered by local councils. These schemes provide businesses with further financial assistance during difficult times, such as when they are facing hardship due to the COVID-19 pandemic or other exceptional circumstances. Businesses can apply for discretionary rates relief on top of empty property relief to help them through challenging periods.
It is important for businesses to regularly review their eligibility for empty property relief and other rates relief schemes to ensure they are taking advantage of all available support. By working closely with their local council and keeping them informed of their circumstances, businesses can maximize their chances of receiving the financial assistance they need to survive and thrive.
Overall, non domestic rates empty property relief is a valuable scheme that provides much-needed support to businesses with empty properties. By taking advantage of this relief and other rates relief schemes, businesses can reduce their financial burdens and focus on their core operations. It is crucial for businesses to stay informed about the eligibility criteria and application process for empty property relief to ensure they are receiving the support they are entitled to.