Business rates can be a significant expense for companies, especially during times when properties are left vacant. In order to alleviate this burden on businesses, the government offers a business rates empty property exemption. This exemption allows for certain properties to be exempt from paying business rates for a specific period of time. In this article, we will explore the details of the business rates empty property exemption and how businesses can take advantage of it.
The business rates empty property exemption is designed to provide relief to businesses that are experiencing financial difficulties or are unable to find tenants for their properties. This exemption allows for properties to be exempt from paying business rates for three months after they become empty. After this initial three-month period, most properties will be subject to paying business rates at the full rate.
There are certain types of properties that are exempt from paying business rates even after the initial three-month period. These include industrial and warehouse properties, buildings that are listed for preservation, and properties with a rateable value of £2,900 or less. These exemptions can provide much-needed relief to businesses that are struggling to keep up with their financial obligations.
In order to qualify for the business rates empty property exemption, businesses must notify the local council that their property is empty. This notification must be made within six weeks of the property becoming vacant in order to be eligible for the exemption. Failure to notify the council within this timeframe could result in the business being responsible for paying business rates for the full duration of the property being empty.
Once the council has been notified of the empty property, they will update the property’s record and adjust the business rates accordingly. It is important for businesses to keep track of the dates when their properties become empty in order to ensure that they are able to take advantage of the exemption. Keeping detailed records of when properties become vacant and notifying the council in a timely manner can help businesses avoid unnecessary expenses.
Business rates can be a significant expense for businesses, especially during times when properties are vacant and generating no income. The business rates empty property exemption provides much-needed relief to businesses that are struggling financially or are unable to find tenants for their properties. By taking advantage of this exemption, businesses can alleviate some of the financial burden associated with owning and managing vacant properties.
In addition to the business rates empty property exemption, there are other options available to businesses that are dealing with vacant properties. For example, businesses can apply for hardship relief if they are experiencing financial difficulties that make it difficult for them to pay their business rates. Hardship relief is granted on a case-by-case basis and can provide temporary relief to businesses that are struggling to keep up with their financial obligations.
Businesses can also explore other options for reducing their business rates, such as applying for small business rates relief or appealing their rateable value. Small business rates relief is available to businesses that have a rateable value of £12,000 or less, and can provide significant savings on business rates. Appealing the rateable value of a property can also help businesses reduce their business rates if they believe that the value has been calculated incorrectly.
In conclusion, the business rates empty property exemption provides much-needed relief to businesses that are struggling financially or are unable to find tenants for their properties. By notifying the local council of empty properties and keeping detailed records, businesses can take advantage of this exemption and avoid unnecessary expenses. In addition to the empty property exemption, businesses can explore other options for reducing their business rates and managing the financial burden associated with owning and managing vacant properties.