Business rates are taxes that are charged on most non-domestic properties, such as shops, offices, pubs, warehouses, and factories. These rates are based on the rateable value of the property and are a significant expense for businesses. However, there are exemptions available for certain properties, including empty properties.
The business rates empty property exemption applies to properties that are unoccupied and have been so for a period of time. This exemption was introduced to encourage property owners to bring empty buildings back into use or to sell them to someone who will do so. The exemption helps to prevent properties from remaining vacant for extended periods, which can have a negative impact on the local economy.
There are several key points to understand about the business rates empty property exemption. Firstly, the exemption only applies to properties that are completely empty. If a property is partly occupied, it will not be eligible for the exemption. Additionally, the length of time for which a property can be exempt from business rates varies depending on the type of property and the local authority in which it is located.
In England, for example, most empty commercial properties are exempt from business rates for the first three months after they become vacant. After this initial three-month period, the property owner will be required to pay the full amount of business rates unless the property qualifies for a further exemption. Some properties, such as industrial premises, may be eligible for an additional three months of exemption, while others, such as listed buildings, may be exempt for longer periods.
It is important for property owners to be aware of the rules surrounding business rates exemptions for empty properties in order to avoid penalties and fines. Failure to pay business rates on an empty property that is not eligible for an exemption can result in legal action being taken against the property owner. Therefore, property owners should familiarise themselves with the regulations and seek advice from a professional if they are unsure whether their property qualifies for an exemption.
There are also certain circumstances in which a property may be eligible for a partial exemption from business rates. For example, if a property is being refurbished or repaired, the owner may be able to apply for a temporary reduction in the amount of business rates they are required to pay. This can help to ease the financial burden on property owners who are making improvements to their properties in order to bring them back into use.
In some cases, property owners may be able to apply for a complete exemption from business rates if the property is no longer viable for use and cannot be let or sold. This may apply to properties that have suffered extensive damage or are no longer suitable for the intended purpose. However, property owners will be required to provide evidence to support their claim for exemption, and this evidence will be assessed by the local authority before a decision is made.
Overall, the business rates empty property exemption is a valuable tool for property owners who find themselves with vacant properties. By understanding the rules and regulations surrounding this exemption, property owners can avoid financial penalties and help to ensure that their properties are brought back into use in a timely manner. Whether a property is temporarily vacant due to refurbishment or permanently empty, it is important for property owners to be aware of their responsibilities and obligations in relation to business rates.
In conclusion, the business rates empty property exemption is a useful measure to encourage property owners to bring vacant properties back into use. By understanding the rules and regulations surrounding this exemption, property owners can avoid financial penalties and help to support the local economy. Property owners should seek advice from a professional if they are unsure whether their property qualifies for an exemption and ensure that they comply with the relevant regulations to avoid legal action.