As a business owner, one of the many expenses you have to consider is paying business rates on your property. However, did you know that there is a business rates empty property exemption that could potentially save you money? In this article, we will delve into the details of this exemption and how it can benefit your business.
Business rates, also known as non-domestic rates, are taxes that businesses must pay on the property they occupy. These rates are used to fund local services such as roads, schools, and emergency services. However, if your property is empty, you may be eligible for an exemption from paying business rates.
The business rates empty property exemption was introduced to encourage property owners to bring empty properties back into use. This exemption applies to properties that are completely vacant and not being used for any business activities. It is important to note that the exemption does not apply if you are using the property for storage or other non-business purposes.
There are several benefits to applying for the business rates empty property exemption. The most obvious benefit is the potential savings on your business rates bill. By not having to pay business rates on your empty property, you can free up funds to invest in other areas of your business.
Another benefit of the exemption is the potential to attract new tenants or buyers for your property. Business rates can be a significant expense for businesses, so offering an empty property with an exemption from business rates can make it more appealing to potential tenants or buyers. This can help you fill your property more quickly and generate rental income or a sale.
In addition, the business rates empty property exemption can also help you avoid penalties for leaving your property empty. In some cases, local authorities can charge a premium on business rates for empty properties that have been vacant for an extended period of time. By applying for the exemption, you can avoid these penalties and potentially save even more money.
To apply for the business rates empty property exemption, you will need to contact your local council and provide evidence that your property is empty. This usually involves submitting a form and providing details such as the address of the property, the date it became empty, and the reason for its vacancy. Once your application has been approved, you will receive confirmation of the exemption and will not have to pay business rates on your empty property.
It is important to note that the business rates empty property exemption is not indefinite. In most cases, the exemption only lasts for a limited period of time, typically up to three months for industrial properties and up to six months for other types of properties. After this time, you may be required to pay business rates on your empty property unless you can demonstrate that you are actively trying to bring it back into use.
In conclusion, the business rates empty property exemption can be a valuable tool for business owners looking to save money on their taxes and attract new tenants or buyers for their vacant properties. By taking advantage of this exemption, you can reduce your expenses, avoid penalties, and potentially generate income from your empty property. If you have a vacant property that is not being used for any business activities, be sure to contact your local council to see if you qualify for the business rates empty property exemption.