When it comes to owning a commercial property, one of the considerations that business owners must take into account is the payment of business rates. Business rates are taxes that are levied on non-domestic properties such as shops, offices, and warehouses. However, there is a provision in the law that provides an exemption for empty properties known as the business rates empty property exemption.
The business rates empty property exemption allows property owners to claim a complete exemption from paying business rates on their property for a certain period of time. This exemption provides relief for property owners who may be unable to find tenants for their property or need time to carry out refurbishments or repairs before putting the property back on the rental market.
The period for which a property can qualify for the business rates empty property exemption varies depending on the type of property and the location. In England, for example, most empty commercial properties are eligible for a 100% exemption from business rates for the first three months that the property is empty. After this initial period, the exemption is reduced to 50% for certain types of properties, such as industrial premises or warehouses.
In some cases, certain types of properties may be eligible for an extended period of exemption. For example, listed buildings, properties with a rateable value of less than £2,900, or properties owned by charities may qualify for an extended period of exemption from business rates.
It is important for property owners to be aware of the criteria for the Business Rates Empty Property Exemption and to take the necessary steps to apply for the exemption if their property meets the eligibility requirements. Failure to do so could result in the property owner being liable for the full payment of business rates, even if the property is empty.
There are a few key points to keep in mind when it comes to the Business Rates Empty Property Exemption:
1. Eligibility: Not all empty properties qualify for the Business Rates Empty Property Exemption. The property must be genuinely empty and not in use in order to be eligible for the exemption. It is important to check with the local council to confirm whether a property meets the eligibility criteria for the exemption.
2. Application process: Property owners must apply for the Business Rates Empty Property Exemption through their local council. The application process may require submitting evidence such as photos of the empty property or a list of any repairs or refurbishments that are being carried out on the property.
3. Monitoring: Property owners must be aware that the local council may carry out periodic checks to ensure that the property continues to meet the eligibility requirements for the exemption. Failure to comply with the conditions of the exemption could result in the property owner being liable for the full payment of business rates.
The Business Rates Empty Property Exemption can provide much-needed relief for property owners who are facing challenges in finding tenants or need time to carry out necessary works on their property. However, it is essential for property owners to be aware of the eligibility criteria for the exemption and to take the necessary steps to apply for the exemption if their property qualifies.
In conclusion, the Business Rates Empty Property Exemption can be a valuable resource for property owners who are struggling to find tenants or need time to carry out repairs or refurbishments on their property. By understanding the criteria for the exemption and following the application process, property owners can benefit from relief from paying business rates on their empty property. It is important for property owners to stay informed about the exemption and to comply with the conditions in order to avoid any potential liabilities.