When it comes to owning commercial property, business owners are faced with various costs and expenses, one of which is business rates. These rates are charged on most non-domestic properties, and the amount to be paid is determined by the rateable value of the property. However, there are certain exemptions and reliefs available to property owners, one of which is the business rates empty property exemption.
The business rates empty property exemption allows property owners to claim relief on their business rates if their property is unoccupied. This exemption was put in place to provide some financial relief to property owners who are unable to generate income from their empty properties. It is important to note that this exemption only applies to properties that are completely unoccupied.
There are certain criteria that need to be met in order to qualify for the business rates empty property exemption. Firstly, the property must be completely vacant, with no furniture or equipment inside. If there is any form of occupation or use of the property, even for storage purposes, it may not be eligible for the exemption.
Additionally, the property must be listed as unoccupied in the local authority’s records. It is the responsibility of the property owner to inform the local council of the property’s empty status in order to claim the exemption. Failure to do so may result in the owner being liable for the full business rates amount.
It is important to note that the business rates empty property exemption is only temporary. In most cases, the exemption lasts for three months from the date the property became empty. After this period, the property owner will be required to pay the full business rates unless they qualify for another form of relief or exemption.
There are certain circumstances in which a property may be exempt from business rates for a longer period of time. Properties that are listed buildings or have a rateable value of less than £2,900 are exempt from business rates altogether, even if they are vacant. Additionally, properties that are empty due to certain legal reasons, such as a compulsory purchase order or planning restrictions, may also be eligible for extended relief.
In some cases, property owners may be able to claim a 100% exemption from business rates for a set period of time. This is known as the small business rate relief and is available to properties with a rateable value of less than £15,000. Owners of properties with a rateable value between £15,000 and £51,000 may also be eligible for a tapered relief.
It is important for property owners to be aware of the various exemptions and reliefs available to them in order to minimize their business rates liability. Failure to take advantage of these opportunities can result in significant financial burden, especially for owners of multiple properties or large commercial spaces.
In conclusion, the business rates empty property exemption is a valuable relief for property owners who are unable to generate income from their vacant properties. By understanding the criteria and requirements for this exemption, property owners can take advantage of this opportunity to minimize their business rates liability and save on costs. It is essential for property owners to stay informed about the various exemptions and reliefs available to them in order to make informed decisions about their properties and finances.