The business rates empty property exemption, commonly known as BREE, is a relief scheme introduced by the UK government to support businesses that have empty properties. This exemption allows businesses to avoid paying business rates on their empty commercial properties for a certain period of time.
Business rates are taxes paid on non-residential properties, such as offices, shops, and warehouses. These rates are calculated based on the rateable value of the property and are used to fund local services provided by the council, such as street cleaning, waste collection, and street lighting. However, when a property is vacant, businesses may struggle to afford these rates on top of other costs associated with holding an empty property.
The Empty Property Exemption was introduced to provide businesses with some relief during difficult times, such as economic downturns or unexpected closures. The exemption period varies depending on the type of property and the local council’s regulations. In general, businesses can enjoy a 100% exemption for the first three months the property is empty, followed by a 50% exemption for the next three months. After this initial period, certain restrictions may apply, and the property owner might be required to pay the full business rates unless they qualify for additional exemptions.
There are several requirements that property owners must meet in order to apply for the business rates empty property exemption. Firstly, the property must be vacant, which means it must be unoccupied and unfurnished. If the property is being actively marketed with the intention of finding a tenant or buyer, it may still qualify for the exemption. However, if the property is being used for storage or any other purpose, it will not be eligible for the relief scheme.
Secondly, property owners must notify the local council as soon as the property becomes vacant to avoid any penalties. This notification should be made in writing and include the date when the property became empty, as well as the reason for the vacancy. Failure to report a vacant property may result in fines or additional charges, so it is important to comply with this requirement to benefit from the exemption.
It is worth noting that the business rates empty property exemption is not automatic, and property owners must apply for the relief through their local council. Each council has its own application process, which may involve filling out a form, providing evidence of the property’s vacancy, and submitting any relevant documents requested by the council. It is advisable to contact the local council or a professional advisor for guidance on how to apply for the exemption and ensure compliance with the regulations.
In addition to the Empty Property Exemption, there are other relief schemes available to businesses struggling with business rates on their empty properties. For example, certain charities and non-profit organizations may qualify for charitable relief, which allows them to claim an 80% discount on their business rates. There is also the Small Business Rates Relief scheme, which offers discounts to businesses with a rateable value below a certain threshold.
Overall, the Business Rates Empty Property Exemption is a valuable support mechanism for businesses facing financial difficulties due to empty properties. By taking advantage of this relief scheme, property owners can reduce their overhead costs and alleviate some of the financial burden associated with holding vacant commercial properties. It is essential to understand the requirements and application process for the exemption to ensure compliance and maximize the benefits available to eligible businesses.