The business rates empty property exemption, also known as the empty property relief, is a scheme that provides relief to businesses that have empty properties. The exemption is designed to alleviate the financial burden on businesses that have vacant properties by reducing or eliminating their business rates obligations.
Business rates, also known as non-domestic rates, are taxes levied on non-residential properties in the UK. These rates are a significant expense for businesses, and when a property becomes vacant, the business may still be required to pay these rates unless they qualify for an exemption.
There are different types of exemptions available for empty properties, which vary depending on the circumstances of the vacancy. Some properties may be completely exempt from business rates, while others may be eligible for a reduced rate. It is important for businesses to understand the criteria for each exemption in order to take advantage of the relief available to them.
One of the most common types of empty property exemption is the three-month exemption. Under this scheme, businesses are granted a full exemption from business rates for the first three months that their property remains empty. This provides businesses with a grace period to find new tenants or decide on the future use of the property without incurring additional expenses.
After the initial three-month period, the exemption may continue for an additional three months, but at a reduced rate. This reduced rate is usually set at 50% of the full business rates obligation, providing businesses with some relief while the property remains vacant.
For properties that have been empty for an extended period of time, there are additional exemptions available. Properties that have been empty for more than 12 months may be eligible for an extended exemption, which provides relief from business rates for an additional six months. This extended relief can be a significant benefit to businesses that are struggling to find new tenants or buyers for their properties.
In some cases, businesses may be eligible for a full exemption from business rates for an extended period of time. Properties that are undergoing major renovation or structural repairs may qualify for a full exemption for the duration of the work. This exemption can provide businesses with significant savings on their business rates obligations while they invest in improving their properties.
It is important for businesses to be aware of the criteria for each type of empty property exemption in order to take advantage of the relief available. In order to qualify for the exemption, businesses must be able to demonstrate that the property is genuinely empty and not being used for any business purposes. This can include providing evidence of vacant possession and showing that the property is not generating any income.
Businesses must also be aware of the rules surrounding temporary exemptions for empty properties. In some cases, businesses may be granted a temporary exemption if they are actively marketing the property for sale or letting. This exemption is usually granted for a limited period of time and requires businesses to provide evidence of their marketing efforts in order to qualify.
business rates empty property exemption can provide businesses with significant savings on their business rates obligations while their properties remain vacant. By understanding the criteria for each type of exemption and actively seeking relief, businesses can reduce their financial burden and focus on finding new tenants or buyers for their properties.