Business rates can be a significant financial burden for many businesses, especially when they are forced to pay rates on properties that are standing empty. To alleviate this burden, the government offers a business rates empty property exemption, providing relief for properties that are unoccupied. In this article, we will explore everything you need to know about the business rates empty property exemption.
What is the business rates empty property exemption?
The business rates empty property exemption, also known as empty property relief, is a scheme offered by the government to provide relief on business rates for properties that are unoccupied. This exemption applies to both commercial and industrial properties that are empty for a certain period of time. The purpose of this exemption is to encourage property owners to bring their empty properties back into use, rather than leaving them vacant.
How Does the Exemption Work?
The duration of the business rates empty property exemption varies depending on the location of the property. In England, for example, most properties are eligible for a 100% exemption for the first three months that they are empty. After this initial period, the exemption is reduced to 50% for properties that are industrial or warehouse premises, and remain at 100% for properties that are listed buildings or are considered to be of historical importance.
In Scotland, the exemption is slightly different. Properties are eligible for a 100% exemption for the first three months, and then a 10% discount for the remainder of the time that they are empty. In Wales, properties are exempt from business rates for three months, and then a rate of 50% is applied for the following three months.
It is important to note that the rules and regulations surrounding the business rates empty property exemption can vary depending on the location of the property, so it is advisable to check with the relevant local authority to determine the exact details of the exemption in a specific area.
Who is Eligible for the Exemption?
Property owners are usually eligible for the business rates empty property exemption if their property is unoccupied. However, there are certain exceptions to this rule. For example, properties that are in need of major repair work may still be eligible for the exemption, as long as the repairs are being carried out with the intention of bringing the property back into use.
It is important to note that certain types of properties are not eligible for the exemption, such as properties that are used for storage, or properties that are being actively marketed for sale or rent. In these cases, the property owner will still be required to pay business rates on the property.
How to Apply for the Exemption?
In order to apply for the business rates empty property exemption, property owners will need to contact their local council or rating authority. They will be required to provide details of the property, including its address, the reason for it being empty, and any plans for its future use.
It is important to keep the local authority informed of any changes to the property’s status, such as if it is sold or let out to a new tenant. Failure to notify the local authority of changes to the property’s status could result in the property owner being liable for business rates on the property.
Benefits of the Exemption
The business rates empty property exemption can provide significant financial relief for property owners who are struggling to cover the costs of business rates on empty properties. By offering this exemption, the government aims to encourage property owners to bring their empty properties back into use, which can help to stimulate economic growth and regeneration in certain areas.
In addition to the financial benefits, the exemption can also help to prevent properties from falling into disrepair, as property owners are more likely to invest in the upkeep of their properties if they are eligible for the exemption. This can help to improve the overall appearance of an area and attract new businesses and residents.
Overall, the business rates empty property exemption is a valuable scheme that can provide much-needed relief for property owners who are struggling to cover the costs of business rates on empty properties. By understanding the rules and regulations surrounding the exemption, property owners can take full advantage of this scheme and help to bring their empty properties back into use.