Business rates can be a significant cost for many businesses, but did you know that there is a way to save money on these rates if your property is empty? This is known as the business rates empty property exemption, and it can provide some relief for businesses that find themselves with vacant premises. In this article, we will explore what the empty property exemption is, how it works, and how businesses can take advantage of it.
The business rates empty property exemption is a policy that allows certain properties to be exempt from paying business rates for a set period of time. This can be a welcome relief for businesses that are struggling financially or going through a period of transition. The exemption applies to both commercial and industrial properties, as well as some other types of non-domestic properties.
There are a few key criteria that must be met in order to qualify for the empty property exemption. The property must be completely empty, meaning that there are no people living or working in the premises. It must also be unused for business purposes during the exemption period. Additionally, the property must be listed as empty on the official rating list maintained by the local council.
The length of time that a property can be exempt from business rates depends on the type of property and the circumstances surrounding its vacancy. In general, most properties can be exempt for three months, after which time they will be subject to full business rates. However, certain properties may be eligible for an extended exemption period of up to six months. It is important to note that the exemption period begins from the date the property becomes empty, not from the date it is listed as empty on the rating list.
Businesses that are eligible for the empty property exemption can apply for it by contacting their local council. They will need to provide evidence that the property meets the criteria for exemption, such as photographs of the empty premises or a signed declaration stating that the property is vacant. Once the council has verified the information provided, they will grant the exemption and adjust the business rates accordingly.
It is worth noting that there are some circumstances in which a property may not be eligible for the empty property exemption. For example, if the property is being actively marketed for sale or let, it may not qualify for the exemption. Similarly, properties that are in the process of being demolished or refurbished may also be ineligible. In these cases, businesses will need to pay the full business rates until the property is once again in use.
The business rates empty property exemption can provide a much-needed break for businesses that are struggling with vacant premises. By taking advantage of this policy, businesses can save money on their overhead costs and focus on getting their property back in use. It is important for businesses to familiarize themselves with the criteria for exemption and to communicate with their local council to ensure that they are taking full advantage of this opportunity.
In conclusion, the business rates empty property exemption can be a valuable resource for businesses that find themselves with empty premises. By understanding the criteria for exemption and working closely with the local council, businesses can save money on business rates and alleviate some of the financial burden of owning vacant property. It is important for businesses to take advantage of this policy and explore all options for reducing costs during times of vacancy.