Business rates are a mandatory tax that commercial property owners have to pay to their local government. The amount of business rates is calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. However, there are certain circumstances where property owners may be eligible for an exemption from paying business rates on their empty properties.
One common exemption is the business rates empty property exemption. This exemption allows property owners to not pay business rates on their empty property for a certain period of time. The purpose of this exemption is to provide some relief to property owners who are unable to find tenants for their property. This exemption can be especially helpful during times of economic uncertainty when it may be difficult to attract tenants.
In the UK, properties are exempt from paying business rates for the first three months that they are empty. After this initial three-month period, most properties are then eligible for a further three months of exemption. This means that in total, most properties can receive six months of exemption from paying business rates on their empty property.
However, it’s important to note that not all empty properties are eligible for this exemption. For example, properties that are in the process of being demolished or redeveloped may not be eligible for the exemption. Additionally, properties that are empty because they are unable to be occupied due to legal reasons, such as planning permission issues, may also not be eligible for the exemption.
Property owners who believe they may be eligible for the business rates empty property exemption should contact their local council to find out more information. The council will be able to provide guidance on how to apply for the exemption and what documents may be required to support the application. It’s important to keep in mind that the responsibility lies with the property owner to apply for the exemption, as the local council may not automatically grant it.
It’s also worth noting that property owners should keep their local council informed of any changes to the property’s status. For example, if a property that was previously exempt from business rates becomes occupied, the property owner should inform the council as soon as possible. Failure to notify the council of changes to the property’s status could result in penalties or fines.
While the business rates empty property exemption can provide relief to property owners, it’s also important for property owners to explore other options for their empty property. For example, property owners may consider renting out the property on a short-term basis or offering it for sale. Alternatively, property owners could explore the option of using the empty property for a different purpose, such as storage or temporary office space.
Property owners should also be aware that there are other types of relief available for empty properties, such as charitable rate relief or rural rate relief. These types of relief are designed to provide additional support to property owners who may be struggling to pay their business rates. Property owners should contact their local council to find out more information about these types of relief and whether they may be eligible.
In conclusion, the business rates empty property exemption can provide much-needed relief to property owners who are struggling to find tenants for their empty property. Property owners should be aware of the eligibility criteria for the exemption and take proactive steps to apply for it if they believe they are eligible. Additionally, property owners should explore other options for their empty property and keep their local council informed of any changes to the property’s status. By taking these steps, property owners can ensure that they are making the most of the available relief options for their empty property.