As a business owner, you are likely aware of the various expenses that come with running a business. One of these expenses is business rates, a tax that businesses must pay on non-residential properties. However, did you know that there are exemptions available for empty properties? Understanding and taking advantage of these exemptions can help you save money and maximize your savings.
The business rates empty property exemption, commonly referred to as the BREE, allows businesses to claim relief on their business rates for empty properties. This exemption was introduced to encourage property owners to bring empty properties back into use and to reduce the number of vacant properties in the area. By providing relief on business rates, the government hopes to stimulate economic growth and support businesses in challenging times.
There are several conditions that must be met in order to qualify for the business rates empty property exemption. Firstly, the property must be completely empty and unfurnished. This means that any equipment or furniture left in the property will disqualify you from claiming the exemption. Additionally, the property must be classed as a non-residential property, such as a shop, office, or warehouse. Residential properties are not eligible for the exemption.
Furthermore, the property must have been empty for a certain period of time in order to qualify for the exemption. The exact duration varies depending on the location, but typically ranges from three to six months. It is important to check with your local council to determine the specific requirements in your area.
Once you have met the conditions for the business rates empty property exemption, you can apply for relief through your local council. The process typically involves submitting an application form and providing evidence of the property’s vacancy, such as photographs or utility bills. The council will then review your application and determine whether you are eligible for the exemption.
It is important to note that the business rates empty property exemption is not automatic and must be applied for. Failure to apply for the exemption could result in you being charged the full business rates on the property, so it is crucial to take action as soon as the property becomes vacant.
By taking advantage of the business rates empty property exemption, businesses can save significant amounts of money on their tax bills. This can provide much-needed relief, especially during challenging economic times. Additionally, bringing empty properties back into use can have positive impacts on the local community and economy by revitalizing vacant spaces and attracting new businesses.
In addition to the business rates empty property exemption, there are other ways that businesses can save money on their tax bills. For example, businesses may be eligible for small business rate relief, which provides discounts on business rates for small businesses. Additionally, certain types of businesses, such as charities and community amateur sports clubs, may be eligible for exemptions or discounts on their business rates.
Furthermore, businesses can also explore other forms of tax relief, such as capital allowances for investment in plant and machinery, research and development tax credits for innovation, and business rates reliefs for specific types of properties, such as renewable energy installations.
Overall, understanding and taking advantage of the business rates empty property exemption can help businesses save money and maximize their savings. By following the conditions for the exemption and applying for relief through the local council, businesses can benefit from reduced tax bills and contribute to the revitalization of empty properties in their area. Be sure to explore all available options for tax relief and savings to ensure you are maximizing your business’s financial resources.