non domestic rates empty property relief, also known as non domestic rates relief for empty properties, is a form of relief provided to property owners who have empty non domestic properties. This relief is aimed at reducing the financial burden on owners of empty properties, encouraging them to bring the properties back into use or dispose of them in a timely manner.
Non domestic rates, commonly known as business rates, are taxes levied on non residential properties in the United Kingdom. These rates are determined by the rateable value of the property, which is assessed by the Valuation Office Agency. Non domestic rates are a significant operating cost for businesses, and owners of empty properties are often faced with the additional burden of paying rates on properties that are not generating any income.
Empty property relief is a provision under the local government finance system that allows owners of empty non domestic properties to receive relief on their business rates. The relief is intended to help property owners manage the costs associated with vacant properties and incentivize them to take action to bring the properties back into productive use.
There are different types of non domestic rates empty property relief available to property owners, each with its own eligibility criteria and duration. The most common forms of relief include:
1. Empty Property Rate Relief: This relief provides a full exemption from business rates for non domestic properties that have been empty for a specified period. The length of the exemption period varies depending on the type of property and the local authority. In some cases, property owners may be eligible for a full exemption for a limited period followed by a reduced rate relief thereafter.
2. Charitable and Community Amateur Sports Club Relief: Charities and community amateur sports clubs may be eligible for relief on their business rates, including properties that are empty. This relief is aimed at supporting organizations that provide valuable services to the community, even when their properties are not in use.
3. Rural Rate Relief: Properties in rural areas may be eligible for relief on their business rates, including empty properties. This relief is intended to support businesses in rural communities and encourage economic development in these areas.
4. Enterprise Zone Relief: Properties located within designated enterprise zones may be eligible for relief on their business rates, including empty properties. This relief is designed to attract investment and stimulate economic growth in areas that have been designated as enterprise zones.
In order to qualify for non domestic rates empty property relief, property owners must meet certain conditions set out by their local authority. These conditions typically include:
– The property must be unoccupied and substantially unfurnished.
– The property must not be used for any business purposes or generating any income.
– The property must be actively marketed for sale or lease.
– The property owner must not be deliberately keeping the property empty in order to avoid paying business rates.
Property owners are required to apply for empty property relief through their local authority, providing evidence to support their application. Local authorities have the discretion to grant relief based on their own policies and guidelines, and property owners may be required to reapply for relief on an annual basis.
It is important for property owners to be aware of the potential consequences of leaving non domestic properties empty for extended periods. In addition to paying business rates, empty properties may also be vulnerable to vandalism, squatting, and deterioration. By taking advantage of empty property relief, owners can reduce their financial burden and minimize the risks associated with vacant properties.
In conclusion, non domestic rates empty property relief is a valuable provision that helps property owners manage the costs of empty non domestic properties. By providing relief on business rates, local authorities can encourage property owners to take action to bring empty properties back into use or dispose of them in a timely manner. Property owners should be aware of the different types of relief available to them and ensure they meet the eligibility criteria set out by their local authority. Ultimately, empty property relief benefits both property owners and the wider community by promoting economic development and revitalizing vacant properties.