When it comes to owning commercial property, business rates can often be a significant expense for owners. However, there are certain exemptions and reliefs available that can help alleviate this financial burden. One such exemption is the business rates empty property exemption, which offers relief to property owners who have vacant commercial properties. In this article, we will delve deeper into what this exemption entails and how property owners can benefit from it.
Business rates are a tax that is levied by local authorities on non-domestic properties, including shops, offices, and warehouses. The amount of business rates payable is based on the rateable value of the property, which is determined by the Valuation Office Agency. However, when a commercial property becomes vacant, the owner is still liable to pay business rates unless they qualify for an exemption.
The business rates empty property exemption applies to properties that are empty for a certain period of time. In England, this period is usually three months for most properties, after which the exemption kicks in. However, there are certain types of properties that are exempt for longer periods, such as industrial properties, which are exempt for six months.
To qualify for the business rates empty property exemption, the property must be completely vacant, meaning that no one is using it for any purpose. If the property is only partially vacant, for example, if one floor of a multi-story building is empty while the rest is still in use, then the exemption may not apply.
It is important for property owners to be aware of the rules surrounding the business rates empty property exemption to avoid any potential penalties. Failure to pay business rates on an empty property that does not qualify for an exemption can result in hefty fines and even legal action.
Property owners can apply for the business rates empty property exemption through their local council. They will need to provide evidence that the property is indeed vacant and satisfy any other requirements that the council may have. Once the exemption is granted, the property owner will not have to pay business rates for the duration of the exemption period.
In addition to the business rates empty property exemption, there are other reliefs and exemptions available to commercial property owners. For example, small business rate relief is available to businesses that only use one property and have a rateable value below a certain threshold. This relief can result in a significant reduction in business rates for eligible businesses.
Another relief that property owners may be able to claim is the charitable rate relief, which is available to registered charities that occupy commercial properties. This relief can result in up to an 80% reduction in business rates for eligible charities.
Overall, the business rates empty property exemption is a valuable relief for property owners who find themselves with vacant commercial properties. By understanding the rules and requirements surrounding this exemption, property owners can take advantage of this relief and reduce their financial burden.
In conclusion, the business rates empty property exemption is a valuable relief for commercial property owners who have vacant properties. By understanding the rules and requirements surrounding this exemption, property owners can benefit from significant cost savings. Additionally, property owners should explore other reliefs and exemptions that may be available to them to further reduce their business rates liabilities.