When it comes to running a business, there are a multitude of expenses that business owners need to consider. One such expense is business rates, which are taxes that commercial property owners must pay to their local council. However, there is a provision known as the business rates empty property exemption that can provide some relief for property owners who find themselves with vacant premises.
The business rates empty property exemption allows property owners to claim relief on their business rates if their property is empty. This exemption was put in place to incentivize property owners to keep their premises in good condition and actively seek tenants, rather than leaving them vacant and potentially falling into disrepair. By providing relief on business rates for empty properties, the government hopes to encourage property owners to bring their vacant properties back into use more quickly.
In order to qualify for the business rates empty property exemption, certain criteria must be met. The property must be completely empty, meaning that there are no furnishings or equipment present, and it must be unoccupied. This means that any property that is being used for storage or is otherwise occupied will not qualify for the exemption. Additionally, the property must be liable for business rates when occupied in order to be eligible for relief when empty.
The length of time that a property can qualify for the business rates empty property exemption varies depending on the type of property. For commercial properties such as shops, offices, or warehouses, the exemption period is usually three months. After this initial three-month period, the property owner will be required to pay 100% of the business rates unless they are granted an extension by their local council. For industrial properties, the exemption period is usually six months, while for listed buildings, the exemption period is indefinite.
It is important to note that the business rates empty property exemption does not apply to properties that are exempt from business rates altogether, such as agricultural land or buildings used for certain types of religious worship. Additionally, the exemption does not apply to properties that are being used for certain purposes, such as a property that is being used for storage or as a car park.
Property owners who wish to claim the business rates empty property exemption must notify their local council in writing. The council will then inspect the property to verify that it meets the criteria for the exemption. Once approved, the property owner will receive relief on their business rates for the specified period of time.
There are some potential drawbacks to claiming the business rates empty property exemption. For example, property owners may still be responsible for other costs associated with maintaining an empty property, such as security and maintenance costs. Additionally, if a property is left vacant for an extended period of time, it may begin to deteriorate, which could make it more difficult to attract tenants in the future.
Despite these drawbacks, the business rates empty property exemption can provide valuable relief for property owners who find themselves with vacant premises. By taking advantage of this exemption, property owners can reduce their financial burden while working to bring their properties back into use.
In conclusion, the business rates empty property exemption is a helpful provision that can provide relief for property owners who find themselves with vacant premises. By meeting certain criteria and notifying their local council, property owners can claim relief on their business rates for a specified period of time. While there are some potential drawbacks to claiming the exemption, overall it can be a valuable tool for property owners looking to bring their vacant properties back into use.