The business rates empty property exemption, also known as the empty property relief, is a policy that provides relief from paying business rates on properties that are unoccupied for a certain period of time. This exemption is put in place to encourage property owners to bring vacant properties back into use and prevent them from becoming derelict or abandoned.
Business rates, also known as non-domestic rates, are taxes that businesses and other non-domestic properties are required to pay to local authorities in the UK. These rates are based on the rateable value of the property and are used to fund local services such as schools, roads, and emergency services.
However, when a commercial property becomes empty, the owner may struggle to find tenants or buyers, leading to financial strain from having to pay business rates on an unoccupied property. To address this issue, the government introduced the business rates empty property exemption to provide relief to property owners during periods of vacancy.
There are certain criteria that must be met in order to qualify for the empty property exemption. Typically, the property must be unoccupied for a specific amount of time, which varies depending on the local authority. For example, in England, properties are exempt from business rates for the first three months they are empty. After this initial period, the property owner may be required to pay the full rate, unless they qualify for additional exemptions.
There are several types of exemptions available for empty properties, including:
1. Small business rate relief: This relief is available to businesses with a rateable value of less than £15,000. Properties that fall into this category may be eligible for a discount on their business rates, even if they are empty.
2. Charitable rate relief: Properties that are owned by registered charities and used for charitable purposes may be eligible for a 80% discount on their business rates, even if the property is empty.
3. Industrial and storage exemptions: Properties that are used for industrial purposes or for storage may qualify for a reduced rate or exemption from business rates, even if they are empty.
It is important for property owners to be aware of these exemptions and to apply for them accordingly. Failing to do so can result in hefty fines and penalties for non-payment of business rates on empty properties.
In addition to the exemptions mentioned above, there are also certain circumstances where properties may be exempt from business rates altogether. For example, properties that are undergoing major renovations or structural repairs may be entitled to a temporary exemption from business rates until the work is completed.
Property owners should also be aware that the business rates empty property exemption does not apply to properties that are exempt from paying business rates altogether, such as agricultural buildings, fish farms, and certain types of listed buildings.
In conclusion, the Business Rates Empty Property Exemption is a valuable policy that provides relief to property owners during periods of vacancy. By taking advantage of the various exemptions available and staying informed about the eligibility criteria, property owners can reduce their financial burden and avoid penalties for non-payment of business rates on empty properties. It is crucial for property owners to stay up to date on the regulations and guidelines set forth by the local authorities to ensure compliance with the law and to make the most of the relief options available to them.