The business rates empty property exemption, also known as the BREE, is a topic that has been widely discussed among business owners and property developers. In simple terms, it refers to the exemption granted to certain properties from paying business rates while they remain unoccupied. This exemption can provide significant financial relief to property owners but it also comes with its own set of regulations and conditions that must be met in order to qualify.
Business rates are taxes paid by business owners on the non-domestic properties they occupy. These rates are used to fund local services and are based on the rateable value of the property. However, when a property becomes empty, the onus of paying these rates falls onto the property owner. This can create a financial burden on property owners, especially in cases where the property remains empty for an extended period of time.
To address this issue, the government has introduced the business rates empty property exemption. This exemption allows certain types of properties to be exempt from paying business rates for a specified period of time while they are unoccupied. The aim of this exemption is to provide some relief to property owners and encourage them to bring their properties back into use.
Properties that may qualify for the business rates empty property exemption include newly built properties that are unoccupied for the first three months, properties that are undergoing major structural repairs or alterations, and properties with a rateable value of less than £2,900. It’s important to note that these exemptions are subject to certain conditions and time limits, so property owners should familiarize themselves with the regulations in order to avoid any penalties.
One of the key benefits of the Business Rates Empty Property Exemption is the financial relief it provides to property owners. By exempting them from paying business rates while their properties are unoccupied, the exemption can help reduce the financial burden associated with owning empty properties. This can be particularly beneficial for small business owners or property developers who may struggle to cover the costs of business rates on empty properties.
However, it’s important to note that the Business Rates Empty Property Exemption is not a blanket exemption and there are conditions that must be met in order to qualify. For example, properties undergoing major structural repairs must be uninhabitable in order to qualify for the exemption. Additionally, properties must be actively marketed for rent or sale in order to be eligible for the exemption. Failure to meet these conditions could result in the property owner being liable for business rates.
In addition to providing financial relief to property owners, the Business Rates Empty Property Exemption also incentivizes property owners to bring their properties back into use. By exempting properties from paying business rates while they are unoccupied, the exemption encourages property owners to actively market their properties and find tenants or buyers. This can help reduce the number of empty properties in an area and contribute to the overall revitalization of the local economy.
Overall, the Business Rates Empty Property Exemption is a valuable tool for property owners and developers who are looking to reduce the financial burden of owning empty properties. By exempting certain types of properties from paying business rates while they are unoccupied, the exemption provides much-needed relief to property owners. However, it’s important for property owners to familiarize themselves with the regulations and conditions of the exemption in order to avoid any penalties. With the right knowledge and planning, property owners can take advantage of the Business Rates Empty Property Exemption and make the most of their vacant properties.