The business rates empty property exemption, commonly known as BREE, is a policy that allows businesses to be exempt from paying business rates for a certain period of time if their property is unoccupied. This exemption provides relief for businesses that are going through challenging times or are in transition. Understanding the details of this exemption is crucial for businesses looking to take advantage of this financial support.
Business rates are taxes that businesses in the UK must pay on their non-domestic properties. These rates are calculated based on the rateable value of the property and are used to fund local services such as schools, roads, and waste management. However, if a property is empty, the business is still required to pay business rates unless they qualify for an exemption.
The empty property exemption was put in place to provide temporary relief for businesses that are unable to occupy their property. The exemption period varies depending on the type of property and the circumstances surrounding its vacancy. In general, most properties are exempt from business rates for the first three months after becoming empty. After this initial period, the business may be required to pay a reduced rate of business rates, or in some cases, they may be eligible for a longer period of full exemption.
There are several criteria that a property must meet in order to qualify for the empty property exemption. Firstly, the property must be unoccupied, meaning that no one is using it for any purpose. This includes properties that are undergoing renovation or refurbishment, as well as those that are awaiting a new tenant. Additionally, the property must be capable of being used as a business premises. Properties that are in a state of disrepair or are deemed unfit for occupation may not qualify for the exemption.
In order to apply for the empty property exemption, businesses must notify their local council of the property’s vacant status. The council will then determine if the property meets the criteria for exemption and will adjust the business rates accordingly. It is important for businesses to keep the council informed of any changes to the property’s vacancy status, as failing to do so could result in penalties or additional charges.
Business owners should be aware that there are certain circumstances in which they may not qualify for the empty property exemption. For example, properties that are deemed to be occupied for security purposes or are being used for storage may not be eligible for the exemption. Additionally, properties that are exempt from business rates for other reasons, such as being used for agricultural purposes, may not qualify for the empty property exemption.
It is also worth noting that the government has made changes to the empty property exemption in recent years in an effort to discourage businesses from leaving their properties vacant for extended periods of time. These changes include reducing the length of the exemption period and introducing penalties for properties that are left empty for an extended period of time. Business owners should stay informed about these changes and be prepared to adjust their financial plans accordingly.
Overall, the business rates empty property exemption can provide valuable relief for businesses that are facing challenges with their properties. By understanding the criteria for exemption and staying informed about any changes to the policy, businesses can take advantage of this financial support and reduce their financial burden during times of vacancy. Businesses should work closely with their local council to ensure that they are complying with the requirements for exemption and are aware of any potential penalties or charges that may apply.