When it comes to owning commercial property, business owners are faced with various costs and responsibilities. One of these costs is business rates, which are taxes that businesses need to pay on non-residential properties. However, there is a business rates empty property exemption that can provide relief for businesses that own empty properties.
The business rates empty property exemption allows businesses to claim relief on their business rates if their property is empty. This exemption can be a welcome relief for businesses that are struggling to find tenants or are in the process of refurbishing their property.
In order to qualify for the business rates empty property exemption, certain criteria need to be met. The property must be completely empty, meaning there are no people occupying the property for any purpose. It’s important to note that even minor uses of the property, such as storage or occasional use, may disqualify the property from the exemption.
Additionally, the property must have been empty for a certain period of time in order to qualify for the exemption. The exact time period varies depending on the location of the property, but in most cases, the property must have been empty for at least three months before the exemption can be claimed.
It’s also worth noting that the business rates empty property exemption is not automatic. Business owners need to apply for the exemption through their local council. The council will then assess whether the property meets the criteria for the exemption and approve the relief if all requirements are met.
One of the main benefits of the business rates empty property exemption is that it can provide significant cost savings for businesses. Business rates can be a major expense for commercial property owners, so being able to claim relief on empty properties can help ease the financial burden.
In addition to cost savings, the exemption can also provide businesses with more flexibility when it comes to managing their properties. For example, businesses may choose to keep a property empty for a period of time in order to carry out renovations or repairs without incurring additional costs.
However, it’s important for businesses to be aware of the potential pitfalls of the business rates empty property exemption. For example, if a property is left empty for an extended period of time, it may become a target for vandalism or squatting. This can not only lead to additional costs for the business owner but also damage the value of the property.
Business owners also need to be aware of changes to the business rates empty property exemption that were introduced in April 2020. Under the new rules, businesses are no longer entitled to an automatic business rates empty property exemption for properties with a rateable value of under £2,900.
Instead, businesses with properties that fall into this category may be eligible for a full exemption for a period of three months, followed by a 100% discount for a further three months. After this initial period, the property will be subject to full business rates.
Overall, the business rates empty property exemption can provide valuable relief for businesses that own empty commercial properties. By understanding the criteria for the exemption and taking advantage of the relief where applicable, businesses can save money and manage their properties more effectively.
In conclusion, the business rates empty property exemption is a valuable resource for businesses that own empty commercial properties. By meeting the criteria for the exemption and applying through their local council, businesses can save money and have more flexibility in managing their properties. It’s important for business owners to be aware of the potential pitfalls and changes to the exemption in order to make informed decisions about their properties.