Business rates are a tax on non-residential properties in the UK, including commercial buildings, shops, offices, and warehouses. These rates are charged to the owner or tenant of the property and are used to fund local services such as schools, roads, and emergency services. However, there are certain exemptions and discounts available for empty properties, known as the business rates empty property exemption.
The business rates empty property exemption is a relief scheme provided by the government to encourage property owners to bring vacant buildings back into use. This exemption allows property owners to claim relief on their business rates for a limited period of time, depending on the type of property and the local council’s policies.
There are two main types of exemptions available for empty properties: the empty property rate relief and the listed building exemption. The empty property rate relief applies to non-domestic properties that are either wholly or mainly unused, while the listed building exemption applies to properties that are listed as buildings of historical or architectural significance.
Under the empty property rate relief, property owners can claim a full exemption from business rates for three months for industrial properties and six months for all other properties. After this initial period, the relief is reduced to 10% of the full rate for as long as the property remains empty. It is important to note that the relief only applies to properties that have been unoccupied for more than three months, and there are certain restrictions on properties not eligible for this relief.
On the other hand, the listed building exemption provides a full exemption from business rates for properties that are listed by Historic England or the relevant local authority. This exemption applies as long as the property remains empty, regardless of the duration of vacancy. However, property owners must provide evidence of the listing and meet certain conditions to qualify for this exemption.
In addition to these exemptions, there are also other relief schemes available for vacant properties, such as the small business rate relief and the rural rate relief. These schemes provide discounts on business rates for small businesses and properties in rural areas, respectively. Property owners should check with their local council to see if they qualify for these additional reliefs.
It is important for property owners to be aware of the business rates empty property exemption and take advantage of it where possible. Vacant properties can be a financial burden for owners, as they still have to pay for maintenance, security, and other costs associated with owning a property. By claiming relief on business rates, owners can reduce their financial burden and potentially attract tenants or buyers to their property.
However, it is also important for property owners to comply with the rules and regulations set out by the local council regarding empty properties. Failure to do so could result in the property losing its exemption and facing penalties or legal action. Property owners should keep detailed records of the vacancy period, evidence of listing for listed buildings, and any other relevant documentation to support their claim for relief.
Overall, the business rates empty property exemption is a valuable relief scheme that can help property owners save money and bring vacant buildings back into use. By understanding the different types of exemptions available and following the guidelines set out by the local council, property owners can make the most of this relief scheme and contribute to the revitalization of their local area.