Business rates are one of the many expenses that business owners need to account for when running a company. These rates are taxes levied on non-residential properties, and they are an essential source of income for local councils. However, there are certain exemptions and reliefs available to businesses to help reduce these costs. One such exemption is the business rates empty property exemption. In this article, we will explore what this exemption entails and how businesses can benefit from it.
The business rates empty property exemption applies to commercial properties that are unoccupied and have been empty for a certain period of time. This exemption was introduced to encourage property owners to bring vacant properties back into productive use, rather than leaving them empty and unused. By granting this exemption, the government aims to stimulate economic activity and support the growth of businesses in the area.
Under the business rates empty property exemption, properties that are empty for a set period are exempt from paying business rates for a specified duration. The length of the exemption period varies depending on the type of property and its location. In most cases, the exemption period is three months for industrial properties and six months for other types of commercial properties. However, this period can be extended to up to 12 months in certain circumstances.
It is important to note that the business rates empty property exemption only applies to properties that are genuinely empty. This means that the property must not be used or occupied for any business purposes during the exemption period. If the property is used for storage or any other business activities, it will not qualify for the exemption, and the owner will be required to pay the full business rates.
In addition to the business rates empty property exemption, there are other reliefs and exemptions available to help businesses reduce their business rates liability. For example, small businesses with a rateable value below a certain threshold may be eligible for small business rate relief, which can provide a significant reduction in business rates. There are also other schemes in place to support specific industries or regeneration projects.
To apply for the business rates empty property exemption, property owners need to contact their local council and provide evidence that the property is genuinely empty. This may involve submitting documents such as utility bills, insurance records, and proof of the property’s vacant status. Once the council has verified the empty status of the property, they will grant the exemption and adjust the business rates accordingly.
It is important for property owners to be aware of the rules and regulations surrounding the business rates empty property exemption to avoid any penalties or fines. Failure to comply with the rules can result in the property owner being liable for the full business rates, as well as potential legal action. Therefore, it is essential to keep accurate records and ensure that the property remains unoccupied during the exemption period.
In conclusion, the business rates empty property exemption is a valuable relief for property owners who have vacant commercial properties. By taking advantage of this exemption, businesses can save on their business rates liability and focus on bringing their properties back into use. It is important for property owners to understand the rules and regulations surrounding this exemption and ensure that they comply with them to avoid any unnecessary costs. Overall, the business rates empty property exemption is a useful tool for supporting economic growth and encouraging the productive use of commercial properties.