If you own commercial property in the UK, you are likely aware of the business rates you are required to pay on that property. These rates are a tax on non-residential properties used for business purposes, and they can often be a significant cost for business owners. However, there is an exemption in place that can provide some relief for property owners – the business rates empty property exemption.
The business rates empty property exemption allows certain types of properties to be exempt from paying business rates for a period of time while they are empty. This exemption was put in place to provide some financial relief to property owners who are struggling to find tenants or are in the process of refurbishing their properties.
There are several key points to keep in mind when it comes to the business rates empty property exemption. Firstly, the exemption only applies to properties that are completely empty. If there is any use of the property at all, even for storage or if it is only partially occupied, the exemption will not apply.
Additionally, the length of time that a property can be exempt from business rates varies depending on the type of property. For example, industrial properties can be exempt for up to six months, while offices and shops can be exempt for up to three months. After this initial period of exemption, the property owner will be required to start paying business rates again.
It is also important to note that there are some exceptions to the business rates empty property exemption. Certain properties, such as those with a rateable value of less than £2,900, are automatically exempt from paying business rates, regardless of whether they are occupied or not. Additionally, properties that are owned by charities or community amateur sports clubs may also be eligible for exemptions.
In order to qualify for the business rates empty property exemption, property owners are required to inform their local council that their property is empty. This can usually be done by filling out a form on the council’s website or by contacting them directly. Once the council has been notified, they will assess the property and determine whether it qualifies for the exemption.
It is worth noting that the business rates empty property exemption is not automatic, and property owners will need to reapply for the exemption each time the property becomes empty again. This can be a time-consuming process, so it is important for property owners to be aware of the rules and regulations surrounding the exemption.
Overall, the business rates empty property exemption can provide some financial relief to property owners who are struggling with empty properties. By understanding the rules and regulations surrounding the exemption, property owners can take advantage of this benefit and reduce their business rates bill while their property is vacant.
In conclusion, the business rates empty property exemption is an important tool for property owners in the UK. By understanding the rules and regulations surrounding the exemption, property owners can take advantage of this benefit and reduce their business rates bill while their property is vacant. For more information on the business rates empty property exemption, visit the website of your local council or speak to a qualified tax professional.