The cost of running a business can be high, especially when it comes to paying various taxes and fees. One of these fees is business rates, which are taxes imposed on most non-domestic properties in the UK.
However, there is a provision that offers relief to business owners who have empty properties. This exemption, known as the business rates empty property exemption, provides relief from paying business rates on properties that are unoccupied for a certain period of time. In this article, we will delve into the details of this exemption, including its eligibility criteria and how to apply for it.
Business rates are based on the rateable value of a property, which is determined by the Valuation Office Agency. These rates are used to fund local services such as police, fire, and rescue services, as well as transportation and infrastructure projects.
When a property becomes empty, the owner is still required to pay business rates unless they qualify for an exemption. The business rates empty property exemption provides relief for eligible properties, but it is important to understand the eligibility criteria to take advantage of this relief.
To qualify for the business rates empty property exemption, a property must be completely unoccupied. This means that there are no people living or working in the property, and it is not being used for any business purposes. Additionally, the property must have been empty for at least three months before the exemption can be applied.
It is important to note that some types of properties are exempt from business rates altogether, regardless of whether they are empty or occupied. These include agricultural land and buildings, fish farms, places of worship, and public rights of way. These properties do not need to apply for the business rates empty property exemption as they are not liable for business rates in the first place.
For properties that do not fall into the exempt category, owners can apply for the business rates empty property exemption through their local council. The council will review the application and determine whether the property meets the eligibility criteria for the exemption. If approved, the property owner will receive relief from paying business rates for as long as the property remains unoccupied.
It is important to keep in mind that the business rates empty property exemption is not a permanent solution. The exemption only provides relief for a limited period of time, typically 3 months for commercial properties and 6 months for industrial properties. After this period, the owner will be responsible for paying business rates unless they qualify for another exemption or relief scheme.
Owners of empty properties should also be aware of the risks and challenges associated with leaving a property unoccupied. Empty properties are more vulnerable to vandalism, theft, and deterioration, which can have a negative impact on the value of the property. To mitigate these risks, owners should take steps to secure and maintain the property while it is unoccupied.
In addition to the business rates empty property exemption, there are other relief schemes available to business owners. These include small business rates relief, charitable rate relief, and rural rate relief, among others. Owners should explore these options to determine which relief schemes they may qualify for and how they can reduce their business rates liability.
Overall, the business rates empty property exemption provides temporary relief for property owners who have unoccupied properties. By understanding the eligibility criteria and application process, owners can take advantage of this exemption and reduce their business rates liability. However, it is important to consider the risks of leaving a property empty and explore other relief schemes to effectively manage business rates costs.