Business rates can be a significant expense for business owners, particularly when they have to pay for vacant properties. However, there is a provision known as the business rates empty property exemption that can provide relief in such situations. In this article, we will delve into the details of this exemption and how it can benefit businesses.
The empty property exemption applies to non-domestic properties that are unoccupied. This exemption can provide relief from paying business rates for a certain period, usually three months for most properties. However, in the current economic climate, the government has extended this period to 12 months for retail, leisure, and hospitality businesses in England. This extension aims to support businesses that have been hit hard by the COVID-19 pandemic and subsequent lockdowns.
The purpose of the empty property exemption is to incentivize property owners to bring their vacant premises back into use. By providing relief from business rates, the government hopes to encourage property owners to find tenants or buyers for their empty properties. This can help stimulate economic activity, create jobs, and revitalize local communities.
It is important to note that the empty property exemption does not apply to all types of properties. For example, certain properties are exempt from paying business rates altogether, such as agricultural land and buildings, fish farms, places of public religious worship, and buildings used for the training or welfare of disabled people. These properties are not eligible for the empty property exemption as they are already exempt from business rates.
To qualify for the empty property exemption, property owners must notify the local council of the vacancy. This can usually be done online or by contacting the council directly. Once the council is notified, they will update their records and apply the exemption to the property. It is important for property owners to keep the council informed of any changes in the property’s occupancy status to avoid any penalties or fines.
While the empty property exemption can provide relief from paying business rates, it is only a temporary measure. Property owners should make every effort to find new tenants or buyers for their vacant properties to avoid prolonged periods of vacancy. In some cases, property owners may consider refurbishing or repurposing their properties to make them more attractive to potential tenants or buyers.
In addition to the empty property exemption, there are other ways that businesses can reduce their business rates liability. For example, small businesses may be eligible for business rates relief or discounts, while businesses in certain sectors may qualify for specific exemptions or allowances. It is important for business owners to explore all available options to minimize their business rates liability and ensure compliance with the law.
Overall, the business rates empty property exemption can provide much-needed relief to property owners facing vacancies. By incentivizing property owners to bring their empty properties back into use, the government hopes to stimulate economic growth and revitalization in local communities. However, it is important for property owners to stay informed about the eligibility criteria and requirements for the empty property exemption to avoid any potential issues with the local council.
In conclusion, the business rates empty property exemption is a valuable provision that can benefit property owners and businesses alike. By providing relief from paying business rates for vacant properties, this exemption encourages property owners to find new tenants or buyers and contribute to the economic development of their local area. Property owners should take advantage of this exemption and explore other ways to reduce their business rates liability to ensure the continued success of their business.