When a business property becomes vacant, it may still be subject to business rates unless it qualifies for an exemption. This exemption, often referred to as the “business rates empty property exemption,” provides relief to businesses that have vacant properties. Understanding how this exemption works can help businesses save money and navigate the complexities of the business rates system.
The business rates empty property exemption is designed to provide temporary relief to businesses that are between tenants or are unable to find a new occupant for their property. Without this exemption, businesses would be required to continue paying business rates on properties that are not generating any income. This can be a significant financial burden for businesses, especially during times of economic uncertainty or when the property market is slow.
In order to qualify for the business rates empty property exemption, a property must meet certain criteria. Firstly, the property must be completely unoccupied and have no fixtures or fittings inside. This means that businesses cannot claim exemption if they are using the property for storage or if there are still items belonging to the previous occupant inside. Additionally, the property must be capable of being used for its intended purpose, meaning that it must meet all necessary safety regulations and building codes.
It’s important for businesses to be aware of the time limits associated with the business rates empty property exemption. The exemption typically lasts for three months from the date that the property becomes empty. After this initial three month period, businesses may be eligible for a further three months of exemption if the property is still unoccupied and capable of being used. However, after six months, businesses will be required to start paying full business rates on the property unless they can demonstrate that they are actively seeking a new tenant or making efforts to bring the property back into use.
It’s also worth noting that certain types of properties are exempt from business rates altogether, even if they are empty. This includes properties that are used for agricultural purposes, some types of industrial properties, and buildings that are listed as being of historical or cultural significance. In these cases, businesses do not need to apply for the business rates empty property exemption as they are automatically exempt from paying business rates on the property.
Businesses that are eligible for the business rates empty property exemption can apply for relief through their local council. The council will typically require businesses to provide evidence that the property is unoccupied and that they are actively seeking a new tenant or making efforts to bring the property back into use. This evidence may include photographs of the property, records of any marketing activities that have been carried out, and details of any improvements that are being made to the property to make it more attractive to potential tenants.
In some cases, businesses may be able to claim hardship relief if they are experiencing financial difficulties and are unable to pay their business rates. This relief is granted at the discretion of the local council and may require businesses to provide evidence of their financial situation, such as bank statements or accounts. Hardship relief is usually temporary and businesses will be required to reapply for relief after a certain period of time.
Overall, the business rates empty property exemption can provide valuable relief to businesses that are struggling to find tenants for their properties or are experiencing financial difficulties. By understanding the criteria for exemption and the time limits associated with it, businesses can take advantage of this relief and avoid paying unnecessary business rates on properties that are not generating any income. It’s important for businesses to stay informed about their rights and obligations when it comes to business rates in order to make the most of the available exemptions and reliefs.