Non domestic rates, also known as business rates, are taxes imposed on non-domestic properties such as shops, offices, and warehouses. These rates are calculated based on the rateable value of the property and are used to fund local services such as schools and roads. However, businesses that own properties that are empty or have become vacant due to circumstances beyond their control can apply for empty property relief to reduce their tax burden. In this article, we will explore how non domestic rates empty property relief works and how businesses can take advantage of this to maximize their savings.
non domestic rates empty property relief is a form of tax relief that allows businesses to reduce or eliminate the amount of business rates they have to pay on properties that are empty. This relief is intended to support businesses that are facing financial difficulties or are unable to find tenants for their properties. It can also help to incentivize property owners to bring vacant properties back into use, thereby revitalizing local economies.
There are different types of empty property relief available, depending on the circumstances of the property. The main types of relief include:
1. 100% relief for the first three months: This relief is available to all businesses that have vacant properties. It allows them to claim a 100% discount on their business rates for the first three months that the property is empty.
2. Extended empty property relief for industrial properties: Industrial properties such as warehouses and factories are eligible for extended empty property relief. This relief allows businesses to claim a 100% discount on their business rates for an additional three months, bringing the total relief period to six months.
3. Listed buildings: Properties that are listed on the national heritage list are eligible for special empty property relief. These properties can claim a 100% discount on their business rates for as long as they remain empty.
To apply for non domestic rates empty property relief, businesses need to contact their local council and provide evidence of the vacancy, such as a lease agreement or a statement from a surveyor. The council will then assess the application and determine the amount of relief that the business is eligible for.
It is important for businesses to be proactive in applying for empty property relief, as the relief is not automatic. Businesses that fail to apply for relief may still be liable to pay the full amount of business rates on their vacant properties.
In addition to empty property relief, businesses can also take advantage of other forms of tax relief to reduce their tax burden. For example, businesses that are located in enterprise zones or areas of regeneration may be eligible for discounts on their business rates. There are also reliefs available for small businesses and charities that occupy non-domestic properties.
By taking advantage of empty property relief and other forms of tax relief, businesses can significantly reduce their tax liabilities and maximize their savings. This can free up resources that can be reinvested back into the business, helping to support growth and create jobs.
In conclusion, non domestic rates empty property relief is a valuable tax relief that can help businesses reduce their tax burden on vacant properties. By understanding the different types of relief available and being proactive in applying for relief, businesses can maximize their savings and support their financial health. Additionally, businesses should explore other forms of tax relief that may be available to them to further reduce their tax liabilities. Ultimately, by taking advantage of these reliefs, businesses can free up resources to invest in their growth and contribute to local economic development.