When it comes to owning commercial property, business rates are a common concern for many business owners. Business rates are taxes that businesses must pay on the non-domestic properties that they occupy. However, there are instances where a property may be exempt from paying business rates, particularly when it is empty. In this article, we will explore the concept of the business rates empty property exemption, its benefits, and how to qualify for it.
The business rates empty property exemption, also known as the Empty Property Relief, allows property owners to claim relief from paying business rates on their empty properties. This exemption was introduced by the government as a way to incentivize property owners to bring their empty properties back into productive use. By providing relief on business rates, property owners are encouraged to rent out or sell their empty properties, thus reducing the number of vacant commercial properties in the area.
There are different types of empty property exemptions available, depending on the specific circumstances of the property. The most common types of exemptions include:
1. **Three-Month exemption**: This is a standard exemption where property owners are not required to pay business rates for the first three months that the property remains empty. This exemption is automatic, and property owners do not need to apply for it.
2. **Six-Month exemption**: After the initial three-month exemption period, property owners may be eligible for an additional three months of exemption, making it a total of six months. To qualify for this extended exemption, property owners must inform the local council of their intention to make the property available for occupation.
3. **Listed building exemption**: Properties that are considered listed buildings may be eligible for an extended period of empty property relief. This exemption is aimed at preserving and protecting historically significant buildings, providing property owners with additional time to restore and renovate the property.
4. **Industrial premises exemption**: Industrial properties that are vacant may also qualify for an extended period of empty property relief. This exemption is designed to support industrial businesses that may require more time to find suitable tenants or buyers for their properties.
5. **Charity exemption**: Properties that are owned by registered charities may be eligible for full relief from paying business rates, even if the property is empty. This exemption recognizes the charitable nature of the organization and aims to support their work through tax relief.
To qualify for the business rates empty property exemption, property owners must meet certain criteria set by the local council. These criteria may include:
1. The property must be genuinely empty and not used for any commercial purposes.
2. The property must be capable of being occupied, i.e., it must be in a habitable condition.
3. Property owners must notify the local council of the property’s empty status and provide any necessary documentation to support their claim for exemption.
It is essential for property owners to keep the local council informed of any changes in the property’s status to ensure that they continue to qualify for the empty property exemption. Failure to do so may result in the property owner being liable for paying business rates on the empty property.
In conclusion, the business rates empty property exemption is a valuable relief that allows property owners to save money on taxes while they work towards bringing their empty properties back into use. By understanding the different types of exemptions available and meeting the necessary criteria, property owners can take advantage of this relief and contribute to revitalizing the local economy. If you own an empty commercial property, it is worth exploring the empty property exemption options available to you and maximizing the benefits they offer.