The business rates empty property exemption, also known as the BREE, is a relief provided to business owners who have vacant properties. This exemption allows businesses to avoid paying business rates on empty properties for a certain period of time. Business rates are taxes that businesses must pay on most non-domestic properties, such as shops, offices, factories, and warehouses.
The purpose of the business rates empty property exemption is to provide some financial relief to businesses that are temporarily unable to find tenants for their properties. This exemption can be crucial for businesses that are facing financial difficulties or are in the process of relocating. By not having to pay business rates on empty properties, businesses can save a significant amount of money and alleviate some of the financial burdens they may be facing.
In order to qualify for the business rates empty property exemption, businesses must meet certain criteria set by the government. The most important requirement is that the property must be completely empty and not be in use for any purpose. This means that businesses cannot claim the exemption if they are using the property for storage, even if it is not being used for its primary purpose.
Additionally, businesses must apply for the exemption through their local council. Each council has its own set of rules and regulations regarding the Business Rates Empty Property Exemption, so it is important for businesses to familiarize themselves with the specific requirements in their area. Some councils may require businesses to provide proof of the property’s vacancy, such as photographs or utility bills.
The length of time that businesses can claim the Business Rates Empty Property Exemption varies depending on the type of property. Most businesses are eligible for a 100% exemption for the first three months that the property is empty. After the initial three-month period, the exemption may be reduced to 50% or be completely removed, depending on the council’s guidelines.
It is important for businesses to keep track of the deadlines for the Business Rates Empty Property Exemption and make sure to reapply if necessary. Failure to apply for the exemption in a timely manner can result in hefty fines and penalties, which can further strain a business’s finances.
While the Business Rates Empty Property Exemption can provide much-needed relief for businesses, it is important for business owners to remember that it is only a temporary solution. Ultimately, the goal should be to find a tenant for the property and start generating income again. Businesses should actively market the property and consider lowering the rent or offering incentives to attract potential tenants.
In some cases, businesses may need to consider other options, such as selling the property or repurposing it for a different use. It is important for businesses to weigh the pros and cons of each option and make an informed decision that is in the best interest of the company.
Overall, the Business Rates Empty Property Exemption can be a valuable tool for businesses that are struggling to find tenants for their properties. By taking advantage of this relief, businesses can save money and alleviate some of the financial pressures they may be facing. However, it is important for business owners to be proactive in their efforts to find a tenant and not rely solely on this exemption as a long-term solution.