When it comes to owning or leasing commercial property, business rates are a significant expense that all businesses must consider. These rates are a tax on non-domestic properties that help fund local services such as police, fire, and refuse collection. However, what happens when a property sits empty? Does the owner still have to pay business rates? This is where the concept of business rates empty property exemption comes into play.
business rates empty property exemption exists as a way to provide relief to property owners who have empty non-domestic properties. The exemption allows for a period of time where the property owner is not required to pay business rates on the vacant property. This can provide much-needed financial relief to businesses that are in between tenants or are refurbishing a property before bringing in new occupants.
One of the key points to understand about business rates empty property exemption is that it is not automatic. Property owners must apply for the exemption through their local council in order to benefit from the relief. Each council may have different criteria and procedures for granting the exemption, so it is important to check with the specific council where the property is located.
The length of time that the business rates empty property exemption lasts can also vary depending on the specific circumstances of the property. In most cases, the exemption lasts for three months. However, some properties may be eligible for an extended exemption period of up to six months.
It is important for property owners to be aware of the rules surrounding the business rates empty property exemption, as failing to apply for the exemption or meet the criteria can result in hefty fines and penalties. In addition, there are certain circumstances where the exemption may not apply, such as when a property is prohibited from being occupied by law.
Property owners should also be aware that the government has made changes to the business rates empty property exemption in recent years. In the past, properties with a rateable value of less than £2,600 were exempt from business rates altogether. However, the government has since removed this small business rate relief, meaning that all properties are now subject to business rates, even if they are empty.
Despite these changes, the business rates empty property exemption can still provide valuable relief to property owners who find themselves with vacant commercial properties. By taking advantage of this exemption, property owners can alleviate some of the financial burden of owning an empty property and focus on finding new tenants or making necessary improvements to the property.
In conclusion, the business rates empty property exemption is an important tool for property owners who have vacant non-domestic properties. By applying for this exemption through their local council, property owners can benefit from relief on their business rates for a period of time. It is crucial for property owners to understand the rules and regulations surrounding the exemption in order to avoid fines and penalties. While recent changes to the exemption have removed certain relief options, the exemption can still provide valuable financial relief to property owners in need.