The term “business rates empty property exemption” refers to the relief or exemption that is provided to property owners when their commercial property remains empty and unused for a certain period. Business rates, also known as non-domestic rates, are taxes that are levied on commercial properties in the UK. These rates are based on the rateable value of the property and are payable by the owner or the occupier of the property.
When a commercial property becomes empty, the property owner may be eligible for a business rates empty property exemption. This exemption provides relief on the business rates that would otherwise be payable on the empty property. The purpose of this exemption is to support property owners who are struggling to find tenants for their empty properties and to encourage the reoccupation of these properties.
There are different rules and regulations governing the business rates empty property exemption, and it is important for property owners to understand these in order to take advantage of the relief that is available to them. In this article, we will discuss the key aspects of the business rates empty property exemption and provide a guide for property owners on how to apply for this relief.
One of the main conditions for claiming the business rates empty property exemption is that the property must be unoccupied. This means that the property must not be used for any commercial purposes, and it must be empty and unused. The property owner must notify the local council when the property becomes empty in order to claim the exemption.
The length of time for which the business rates empty property exemption is granted varies depending on the type of property. In general, the exemption is granted for three months for most types of properties. However, for industrial properties, the exemption period is extended to six months. After this initial period, the property owner may be required to pay the full business rates on the empty property unless they are able to demonstrate that they are actively trying to reoccupy the property.
In order to claim the business rates empty property exemption, property owners are required to provide evidence to the local council that they are actively trying to reoccupy the property. This may include providing details of marketing efforts, such as advertising the property for rent or sale, or engaging with commercial agents to find a tenant for the property. Property owners may also be required to provide evidence of the condition of the property and any efforts that have been made to bring the property up to a suitable standard for occupation.
It is important for property owners to keep detailed records of their efforts to reoccupy the property in order to support their claim for the business rates empty property exemption. This may include keeping copies of correspondence with potential tenants or agents, photographs of the property, and any reports on the condition of the property. It is also important to keep track of any expenditure that has been incurred in relation to the property, as this may be taken into account when assessing the claim for exemption.
In some cases, property owners may be able to apply for a further extension to the business rates empty property exemption if they are still unable to find a tenant for the property. This may be subject to certain conditions, such as providing evidence of ongoing efforts to reoccupy the property and demonstrating that the property is in a suitable condition for occupation. The local council has the discretion to grant further exemptions on a case-by-case basis.
Overall, the business rates empty property exemption provides valuable relief to property owners who are struggling to find tenants for their empty properties. By understanding the rules and regulations governing this exemption and keeping detailed records of their efforts to reoccupy the property, property owners can maximize their chances of successfully claiming this relief.
In conclusion, the business rates empty property exemption is an important scheme that supports property owners in managing their empty commercial properties. By following the guidelines outlined in this article and working closely with the local council, property owners can take advantage of this exemption and reduce the financial burden of empty properties on their business.