Business rates can be a significant cost for businesses, especially when it comes to empty properties. However, there is a special exemption in place for businesses that have empty properties. This exemption can provide relief for businesses that are struggling with the financial burden of business rates on vacant properties. In this article, we will delve into the details of the business rates empty property exemption and explore how businesses can benefit from it.
The business rates empty property exemption, also known simply as the Empty Property Relief, is a policy that allows businesses to claim relief on their business rates for properties that are empty. This exemption was introduced by the government to provide some financial relief to business owners who have vacant properties. The exemption applies to both commercial and industrial properties, as well as some properties that are used for charitable purposes.
Business rates are a tax that businesses in the UK have to pay on their non-domestic properties. These rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. However, when a property becomes empty, businesses are still required to pay business rates on it unless they qualify for the Empty Property Relief.
To qualify for the Empty Property Relief, a property must be completely empty, meaning that it cannot be used for any purpose at all. This includes both the property itself and any external grounds or yards associated with it. If a property is partly used, it will not qualify for the exemption and business rates will still be payable on the whole property.
It is important to note that there are time limits associated with the Empty Property Relief. In most cases, businesses can claim relief for the first three months that a property is empty. After that, full business rates will be payable unless the property falls into certain exempt categories. These categories include listed buildings, properties with a rateable value of under £2,900, and properties owned by charities.
In some cases, businesses may be able to claim an extended period of empty property relief. This can be granted for properties that are undergoing major repairs or structural alterations, making them uninhabitable. To qualify for this extended relief, businesses must provide evidence that the property is undergoing works that will bring it back into use. The local council will assess each case individually and decide whether to grant the extended relief.
It is also worth noting that there are some circumstances where empty properties are exempt from business rates altogether. For example, properties that are used for certain agricultural purposes, such as storing agricultural machinery or animal feed, may be exempt from business rates. Similarly, properties that are kept empty because they are prohibited from being occupied by law, such as properties with dangerous structural defects, may also be exempt.
Overall, the business rates empty property exemption can provide valuable financial relief for businesses that are struggling with the costs of vacant properties. By claiming this exemption, businesses can reduce their financial burden and potentially save a significant amount of money on business rates. However, it is important to be aware of the eligibility criteria and time limits associated with the exemption to ensure that businesses comply with the rules set out by the government.
In conclusion, the business rates empty property exemption is a valuable tool for businesses that have empty properties. By understanding the eligibility criteria and time limits associated with the exemption, businesses can make informed decisions about claiming relief on their business rates. This exemption can provide much-needed financial relief for businesses facing the costs of vacant properties, allowing them to focus on other aspects of their operations.