When it comes to running a business, there are many expenses that owners need to consider. One of the major costs that can significantly impact a company’s bottom line is business rates. Business rates are taxes that businesses in the UK need to pay on the commercial property they occupy. These rates are charged by local authorities and are based on the rateable value of the property.
However, there is a specific exemption in place when it comes to empty properties. The business rates empty property exemption allows business owners to avoid paying rates on properties that are vacant. This exemption can provide some relief to businesses that are experiencing financial difficulties or are simply in between tenants.
The business rates empty property exemption can be a valuable tool for business owners, but it’s important to understand the rules and regulations surrounding this exemption. In this article, we’ll take a closer look at what the business rates empty property exemption entails and how business owners can take advantage of it.
Understanding the business rates empty property exemption
The business rates empty property exemption applies to commercial properties that are completely unoccupied. This means that there are no individuals or businesses actively using the property for commercial purposes. In order to qualify for the exemption, the property must be empty for a certain period of time, which varies depending on the location.
It’s important to note that the exemption does not apply to properties that are being used for storage purposes or have limited use. If a property is being used in any capacity, then it will not be eligible for the exemption. Additionally, properties that are undergoing renovation or repair may still be subject to business rates, even if they are not currently being used for commercial purposes.
Business owners should also be aware that the exemption does not apply indefinitely. In most cases, the exemption will only last for a period of three months. After this time, business owners will need to start paying business rates on the empty property unless they can demonstrate that there are exceptional circumstances that warrant an extension to the exemption period.
How to Apply for the business rates empty property exemption
Business owners who believe that they qualify for the business rates empty property exemption will need to apply to their local authority in order to receive the exemption. The application process may vary depending on the specific regulations of the local authority, but typically, business owners will need to provide evidence that the property is empty and that they are not using it for any commercial purposes.
It’s also important for business owners to keep the local authority informed of any changes to the property’s occupancy status. If the property becomes occupied at any point during the exemption period, business owners will need to notify the local authority so that they can start paying business rates on the property.
Business Rates Relief for Empty Properties
In addition to the business rates empty property exemption, there are also other forms of relief available for business owners who are struggling to pay their rates. For example, small business rate relief is a scheme that provides discounts on business rates for businesses with a rateable value below a certain threshold.
There are also other forms of discretionary relief that local authorities can provide to businesses that are facing financial difficulties. For example, local authorities may offer hardship relief to businesses that are experiencing economic hardship or are facing exceptional circumstances that are impacting their ability to pay business rates.
Overall, the business rates empty property exemption can provide some much-needed relief to business owners who are struggling to pay their rates on vacant properties. By understanding the rules and regulations surrounding this exemption and following the proper application process, business owners can take advantage of this relief and alleviate some of the financial burden associated with empty properties.