When it comes to running a business, every penny counts. This is why understanding the various costs and expenses associated with operating a business is crucial for its success. One such cost that many business owners may not be aware of is business rates, which are taxes levied on non-domestic properties in the UK. These rates can be a significant financial burden for businesses, especially when they are struggling to make ends meet.
However, there is a silver lining for businesses that have vacant properties – the business rates empty property exemption. This exemption provides relief for businesses that have empty properties and can help ease the financial strain that comes with operating a business. In this article, we will delve into the details of the business rates empty property exemption and how businesses can benefit from it.
First and foremost, it is important to understand what constitutes an empty property for the purposes of the business rates empty property exemption. In general, a property is considered empty for business rates purposes if it is not being used for any commercial purpose. This can include properties that are undergoing refurbishment or renovation, properties that are being marketed for sale or let, or properties that are simply vacant for any reason.
Once a property is deemed empty, businesses may be eligible for the business rates empty property exemption. This exemption provides relief from paying business rates on the empty property for a certain period of time. The length of the exemption period can vary depending on the specific circumstances of the property and the location in which it is situated.
In England, for example, most empty commercial properties are exempt from business rates for the first three months after they become 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 some cases, certain types of properties may be eligible for an extended exemption of up to six months or even longer.
Businesses looking to take advantage of the business rates empty property exemption must apply for it through their local council. The application process typically involves providing details about the property and the reasons for its vacancy, as well as any supporting documentation that may be required. It is important for businesses to keep detailed records of their property vacancy in case they need to provide evidence to support their exemption application.
It is also worth noting that businesses that are looking to claim the business rates empty property exemption should be aware of the changes that were made to the exemption rules in 2017. Prior to these changes, empty properties with a rateable value of less than £2,600 were exempt from business rates altogether. However, the current rules stipulate that all empty properties are subject to business rates, albeit with a temporary exemption period.
In addition to the business rates empty property exemption, there are other reliefs and discounts available to businesses that may help reduce their overall business rates liability. For example, small businesses with a rateable value of less than £12,000 may qualify for small business rate relief, which can provide a significant discount on their business rates bill. There are also other types of relief available for certain types of businesses, such as charities and non-profit organizations.
In conclusion, the business rates empty property exemption can provide much-needed relief for businesses that are struggling with the financial burden of empty properties. By understanding the eligibility criteria and the application process, businesses can take advantage of this exemption and reduce their business rates liability. Additionally, businesses should explore other relief options that may be available to further mitigate their business rates costs. Overall, navigating the ins and outs of business rates can be complex, but with the right knowledge and guidance, businesses can effectively manage this aspect of their finances and focus on growing their operations.