Business rates are a crucial part of running a commercial property. These taxes are determined by the rateable value of a property and are used to fund local services. However, what happens when a property becomes empty? In the UK, there is a business rates empty property exemption that allows property owners to reduce or eliminate their business rates liability when their property is empty. In this article, we will explore the ins and outs of this exemption and how it can benefit property owners.
When a commercial property becomes empty, the property owner is still liable to pay business rates unless they qualify for an exemption. The business rates empty property exemption allows property owners to claim relief from paying business rates for a certain period of time. This exemption applies to both commercial and industrial properties that are empty.
There are different rules for when the exemption applies, depending on the location of the property. In England, for example, properties are exempt from paying business rates for the first three months that they are empty. After this initial three-month period, the property owner will be required to pay the full business rates unless they qualify for an extended exemption.
In Scotland, properties are exempt from paying business rates for the first three months if they have a rateable value of less than £1,700. Properties with a rateable value of more than this amount are exempt for the first six months. After this initial period, property owners are required to pay the full business rates unless they qualify for an extended exemption.
In Wales, properties are exempt from paying business rates for the first three months if they have a rateable value of less than £2,400. Properties with a rateable value of more than this amount are exempt for the first six months. As with England and Scotland, property owners are required to pay the full business rates after this initial period unless they qualify for an extended exemption.
Property owners may be able to claim an extended exemption if their property is undergoing major repairs or structural changes. This exemption is designed to give property owners some relief while they are making improvements to their property. In order to qualify for an extended exemption, property owners will need to provide evidence of the work being carried out and show that the property is not being used for any other purpose during this time.
It is important for property owners to be aware of the rules and regulations surrounding the business rates empty property exemption in order to avoid any unnecessary penalties or fines. Property owners should also keep detailed records of any work being carried out on their property in order to support their claim for an extended exemption.
There are also certain types of properties that are exempt from paying business rates altogether, regardless of whether they are empty or not. These include properties that are used for agricultural purposes, public parks, and properties that are listed buildings. It is important for property owners to check with their local council to confirm whether their property qualifies for any of these exemptions.
In conclusion, the business rates empty property exemption is an important provision for property owners who find themselves with empty commercial or industrial properties. By understanding the rules and regulations surrounding this exemption, property owners can take advantage of the relief it provides and avoid any unnecessary penalties or fines. Property owners should also keep detailed records of any work being carried out on their property in order to support their claim for an extended exemption.