Business rates are taxes paid on non-domestic properties such as shops, offices, and warehouses. These rates are calculated based on the rateable value of the property and are collected by local authorities to fund local services.
However, many property owners are not aware of the business rates empty property exemption that can apply when a property is unoccupied. This exemption can provide significant savings for property owners who find themselves with vacant premises. In this article, we will explore the business rates empty property exemption in detail and discuss how property owners can take advantage of this benefit.
The business rates empty property exemption applies to properties that are unoccupied for a certain period of time. In England, this period is usually three months for commercial properties and six months for industrial properties. Once a property has been empty for this period, the owner can apply for a 100% exemption from business rates for the next three months.
This exemption can provide significant relief for property owners who may be struggling to find tenants or are in the process of refurbishing their premises. It can also help to incentivize property owners to bring vacant properties back into use, stimulating economic growth and revitalizing local areas.
In some cases, property owners may be eligible for additional relief beyond the initial three months of exemption. For example, properties with a rateable value of less than £2,900 are entitled to a 100% exemption for as long as they remain unoccupied. Similarly, listed buildings are also eligible for extended relief, with exemptions lasting for as long as the property remains empty.
It is important for property owners to be aware of the conditions attached to the business rates empty property exemption. For example, properties must be genuinely unoccupied in order to qualify for the exemption. This means that any temporary uses of the property, such as storage or advertising, may invalidate the exemption and result in the property owner having to pay business rates.
Property owners should also be aware of the implications of making false claims for the exemption. Local authorities have the power to investigate claims for empty property relief and may require property owners to provide evidence to support their application. Failure to do so can result in penalties and fines, so it is important for property owners to be honest and transparent in their dealings with the local authorities.
In recent years, there has been some controversy surrounding the business rates empty property exemption. Critics argue that the exemption has led to properties being left vacant for extended periods of time in order to avoid paying business rates. This can have a negative impact on local communities, leading to the deterioration of properties and a decline in footfall in commercial areas.
To address these concerns, the government has introduced measures to encourage property owners to bring empty properties back into use. For example, they have introduced schemes such as the Empty Property Rate Relief Scheme, which provides relief for properties that are brought back into use after being empty for a certain period of time. This can help to incentivize property owners to invest in their properties and contribute to the regeneration of local areas.
Overall, the business rates empty property exemption can provide valuable support for property owners who find themselves with vacant premises. By understanding the conditions attached to the exemption and taking advantage of any additional relief that may be available, property owners can save money and contribute to the revitalization of their local area. It is important for property owners to be aware of their rights and responsibilities in relation to business rates and to seek advice from a professional if they are unsure about how the exemption applies to their property.
In conclusion, the business rates empty property exemption provides a valuable opportunity for property owners to save money and contribute to the regeneration of their local area. By understanding the conditions attached to the exemption and taking advantage of any additional relief that may be available, property owners can benefit from significant savings and help to revitalize their communities.