One of the many costs associated with owning a business property is the payment of business rates. These rates are taxes that are imposed on most non-domestic properties, including commercial buildings, offices, shops, and warehouses. However, there is a provision in the law that allows for a business rates empty property exemption in certain cases.
The business rates empty property exemption is designed to provide relief for property owners who find themselves in a situation where they are unable to find a tenant or use the property for a specific period. The exemption allows for a temporary break from paying business rates on a vacant property, which can be a significant financial benefit for businesses that are struggling to find tenants or are undergoing refurbishment or redevelopment.
There are two main types of business rates empty property exemption: the first three months exemption and the extended exemption. The first three months exemption allows for a three-month grace period during which no business rates are payable on an empty property. This exemption is automatic and does not require any application to be made by the property owner.
After the initial three-month period, however, the property owner will need to apply for the extended exemption if they wish to continue to receive relief from paying business rates on the vacant property. The extended exemption can last for a further three months for most properties, although in certain cases, such as industrial properties, it can last for up to six months.
It is important to note that there are some exceptions to the business rates empty property exemption. Certain types of properties, such as listed buildings and properties with a rateable value of less than £2,900, are not eligible for the exemption. Additionally, properties that have been empty for more than three months prior to April 2016 are subject to different rules regarding business rates relief.
Business owners should also be aware that the local council has the authority to withdraw the business rates empty property exemption if they believe that the property owner is not actively trying to find a tenant or use the property. This means that property owners must be able to demonstrate that they are making efforts to market the property and secure a tenant in order to continue to receive relief from paying business rates.
Property owners should also be aware that the rules regarding the business rates empty property exemption can vary depending on the location of the property. Each local council in the UK has the authority to set its own rules and guidelines regarding business rates relief, so it is important to check with the local council to determine what specific exemptions apply in a particular area.
In addition to the business rates empty property exemption, there are other forms of relief available to property owners who are struggling to pay their business rates. For example, small businesses may be eligible for small business rate relief, which provides a discount on the business rates payable on a property with a rateable value of less than £15,000.
Overall, the business rates empty property exemption is an important provision that can provide valuable financial relief to property owners who find themselves with a vacant property. By understanding the rules and guidelines surrounding the exemption, property owners can take advantage of this relief and alleviate some of the financial burden associated with owning a business property.