Understanding The Business Rates Empty Property Exemption

If you own a commercial property, you are likely familiar with the concept of business rates – the tax that businesses in the UK must pay on the non-domestic property they occupy. However, what you may not be as familiar with is the business rates empty property exemption. This exemption is a key aspect of the UK’s business rates system, and it is important for property owners to understand how it works.

The business rates empty property exemption allows property owners to claim relief from paying business rates on their property if it is unoccupied. This exemption is aimed at encouraging property owners to bring empty properties back into use, rather than leaving them vacant. By providing relief from business rates, the government hopes to incentivize property owners to make productive use of their properties, which in turn benefits the local economy.

There are two main types of empty property exemption available to property owners: the three-month exemption and the six-month exemption. The three-month exemption allows property owners to claim relief from business rates for the first three months that their property is empty. After the initial three-month period, the property owner will be required to pay full business rates unless they qualify for the six-month exemption.

The six-month exemption is available to property owners who can demonstrate that their property is undergoing major repair or structural alterations. In order to qualify for this exemption, property owners must provide evidence that the work being carried out on the property is necessary and will take at least six months to complete. Once the work is completed, the property owner will be required to start paying full business rates again.

It is worth noting that the business rates empty property exemption does not apply to all properties. There are a number of exceptions to the exemption, including properties that are used for storage or that are not capable of being used for any purpose. Additionally, certain types of properties, such as listed buildings, may be exempt from business rates altogether.

In order to claim the business rates empty property exemption, property owners must inform their local council that their property is unoccupied. The council will then assess the property and determine whether it qualifies for the exemption. Property owners may be required to provide evidence, such as photographs or planning permission documents, to support their claim.

It is important for property owners to be aware of the rules surrounding the business rates empty property exemption, as failure to comply with the regulations can result in penalties. Property owners who claim the exemption fraudulently or fail to notify their local council that their property is unoccupied may be subject to fines or legal action.

In conclusion, the business rates empty property exemption is an important aspect of the UK’s business rates system. By providing relief from business rates for unoccupied properties, the government aims to encourage property owners to bring empty properties back into use. However, it is important for property owners to understand the rules surrounding the exemption and to comply with them in order to avoid penalties.