Business rates are a tax on non-domestic properties in the UK, which are used to fund local services such as schools, roads, and waste collection. However, there is a provision in the law that allows property owners to claim an exemption from paying business rates on empty properties for a certain period of time. This exemption is known as the business rates empty property exemption.
The purpose of the business rates empty property exemption is to provide relief to property owners who are unable to find tenants for their properties, or who are undergoing renovations or repairs. It is also meant to prevent property owners from being penalized for circumstances beyond their control, such as a downturn in the economy or changes in market conditions.
In order to qualify for the business rates empty property exemption, property owners must meet certain criteria set out by the government. The property must be empty and it must have been empty for at least three months before the exemption can be applied for. Property owners must also demonstrate that they are actively trying to find tenants for the property, either by advertising it for rent or by engaging the services of a commercial property agent.
Once the exemption has been granted, property owners can enjoy a period of relief from paying business rates on their empty property. The length of the exemption period can vary depending on the type of property and the local council’s policies, but it is usually around three to six months for industrial properties and up to 12 months for other types of properties.
It is important for property owners to be aware of the deadlines for applying for the Business Rates Empty Property Exemption as missing these dates can result in penalties and backdated charges. Property owners should also keep records of their efforts to find tenants for the property, such as copies of advertisements and correspondence with commercial property agents, as these may be required as evidence when applying for the exemption.
It is worth noting that there are some changes to the Business Rates Empty Property Exemption rules that came into effect in April 2017. The UK government introduced new regulations that restrict the period for which a property can be exempt from paying business rates to three months instead of the previous six to 12-month period. This change was aimed at encouraging property owners to bring empty properties back into use more quickly and reduce the number of long-term empty properties in the UK.
There are also certain types of properties that are exempt from the Business Rates Empty Property Exemption, such as listed buildings, places of worship, and properties owned by charities or community amateur sports clubs. These properties may be eligible for other forms of relief or exemption from business rates, so it is important for property owners to check with their local council or a qualified advisor to see if they are entitled to any other forms of relief.
Overall, the Business Rates Empty Property Exemption is a valuable tool for property owners who find themselves with empty properties for various reasons. By providing a period of relief from paying business rates, it allows property owners to focus on finding tenants or making necessary repairs without the added burden of additional taxation. However, it is important for property owners to be aware of the criteria for applying for the exemption and to keep track of deadlines and documentation to ensure that they can take full advantage of this relief.