Business rates can be a significant cost for business owners, especially when their properties are sitting empty. However, there is a potential solution in the form of the business rates empty property exemption. In this article, we will delve deeper into this exemption and how it can benefit business owners.
The business rates empty property exemption is a relief granted to business owners who have vacant commercial properties. It essentially provides a temporary exemption from paying business rates on properties that are empty for a certain period of time. This exemption can be a welcome relief for business owners who are struggling to fill their properties or waiting for renovations to be completed.
So how does the business rates empty property exemption work? In general, commercial properties are subject to business rates, which are taxes imposed by local authorities on non-domestic properties. When a property becomes empty, the business owner is still liable to pay business rates on it unless they qualify for an exemption.
The length of the exemption period varies depending on the type of property and the location. In England, for example, most vacant commercial properties are exempt from business rates for the first three months after becoming empty. After this initial three-month period, the exemption only applies to certain types of properties, such as industrial or warehouse properties, which are exempt for a further three months. In Scotland, the exemption period is slightly longer, with vacant properties being exempt for the first three months, and then up to 100% relief for the next six months.
It is important to note that the rules and regulations regarding business rates empty property exemption can differ depending on where your property is located, so it is advisable to consult with your local authority or a professional advisor for specific guidance.
To qualify for the exemption, the property must be wholly unoccupied. This means that there must be no furniture or equipment left in the property, and it must not be used for any business purposes. Some properties may still be eligible for the exemption even if they are partly occupied, such as properties that are undergoing renovations or are in the process of being sold.
It is also worth noting that the business rates empty property exemption does not apply to all types of properties. Certain properties are not eligible for the exemption, such as properties that are listed buildings or properties owned by charities. In these cases, business owners may still be liable to pay business rates on their empty properties.
There are also some instances where business owners may be able to claim a discount on their business rates rather than a full exemption. For example, in England, business owners with properties that have a rateable value of less than £2,900 are entitled to a 100% discount on their business rates when the property is empty.
Overall, the business rates empty property exemption can provide much-needed relief for business owners who are struggling with the costs of empty commercial properties. By taking advantage of this exemption, business owners can alleviate some of the financial burdens associated with vacant properties and focus on finding new tenants or completing renovations.
In conclusion, the business rates empty property exemption can be a valuable tool for business owners facing the challenges of empty commercial properties. By understanding the rules and regulations surrounding this exemption and ensuring that their properties meet the eligibility criteria, business owners can benefit from temporary relief from paying business rates. If you are a business owner with empty commercial properties, it is worth exploring the possibility of claiming the business rates empty property exemption to ease the financial strain.