This checklist outlines the non-domestic properties that have business rates exemptions:

Industrial And Warehouse Property

  • Only for a six-month cycle can you get 100 percent relief.
  • During the six-month duration, short-term occupancy of the property (of six weeks or less) by, for example, a tenant or licensee would be overlooked.

Retail Property With Business Rates Exemptions

  • For a total of three months, you would have complete relaxation.
  • During the three-month cycle, adjustments of ownership do not result in a new three-month exemption. The exception only extends to the house, not the ratepayer.
  • During the three-month duration, short-term occupancy of the property (of six weeks or less) by, for instance, a tenant or licensee would be overlooked. For the three-month span of short-term occupation, the business rates allowance will continue to apply. This law prohibits property owners from obtaining additional rate exemption times by creating a temporary letting.
  • If the property is rented or occupied for more than six weeks, the rates exemption may expire at the beginning of the time; however, if the property becomes empty again, a new exemption term will be obtained.

Other Exempt Properties

  • Owners who are barred by statute from occupying or enabling their property to be occupied (for example, where there has been a breach of fire safety and a prohibition notice has been served).
  • Properties that are unable to be occupied due to government intervention (for example, where the property is closed due to a prohibition order for health and safety reasons).
  • Empty Properties:

-whose owner is entitled to ownership in their capacity as trustee under a deed of contract 

-whose rateable value is below a certain threshold (£2,600 from 1 April 2011).

-whose owner is eligible to ownership in their capacity as a personal representative. 

-possessed by persons pursuant to a bankruptcy decree.

-managed by a corporation that is in the process of being wound up.

-It is owned by a corporation that is in the process of going out of business. Where land is used, however, an administrator is responsible for paying business rates (for example, where a company in administration continues to trade from the property).

Small Business Rates Exemptions

  • When a small business occupies a property with a rateable value of less than £18,000 (£25,500 in Greater London), the company could be eligible for a tax reduction of up to 50%.
  • There is complete relief for qualifying small businesses renting property with a rateable value of up to £6,000 until 30 September 2012 in Wales and 31 March 2013 in England, and tapering relief for businesses with a rateable value of up to £12,000 until 31 March 2013.

Zero Rating

Certain properties are “zero rated” because they are vacant and the owner is:

  • It suggests that when the land is re-occupied, it will be used entirely or mostly for charitable purposes (whether of that charity or that of other charities).
  • When the land is re-occupied, it indicates that it will be used entirely or mostly for the needs of the community amateur sports club (CASC) or for the use of that and another CASC.

Zero-rating does not apply to empty assets owned by charity or CASCs awaiting disposition for other uses.

Relief Granted On A Case-by-case Basis

In such circumstances, the district council has the authority to grant relief.

Partial Occupation

Where a house is only partially inhabited, the owner may appeal to the Valuation Office Agency by the city authority to get the rateable value divided to represent the occupied and unoccupied areas.

What Is Rateable Occupation?

To be considered rateable, it must meet one of four criteria:

  • True occupation ownership, which entails actual land use.
  • Possession or occupation that is exclusive
  • Occupation or possession that provides the occupier or possessor with some worth or advantage.
  • Possession or occupation of good consistency or continuity.

If you would like to find out more about business rate exemptions then get in touch today.