Which buildings can save you money on business rates?
Last week it was revealed that thousands of retailers across the country were benefitting from government business rate discounts. Some retailers can enjoy £1,000 off business rates, but there are a number of other measures in place that can reduce business rates.
If you are unsure whether or not you could benefit from rate relief, below we have broken exactly what type of buildings can get reduced rates and the criteria needed to be eligible.
Exempt from business rates – The following buildings are exempt from paying any business rates:
- Agricultural land and buildings
- Properties that are used for the training or welfare of disabled people
- Buildings registered to be used as church halls or for public religious worship
- Lighthouses
- Parks
Empty Properties – Buildings that are empty are exempt from business rates for three months, increasing the incentive for buyers to consider occupying previously unused units. The properties listed below benefit from extended rate relief:
- Empty industrial units, such as warehouses, enjoy a further three month exemption from paying business rates
- Listed buildings are exempt until they are reoccupied
- Buildings with a rateable value under £2,600 are exempt until they are reoccupied
- Empty buildings owned by charities are exempt if the next use of the property will be primarily for charitable purposes
- Community amateur sports club properties, but only if the next use will also be mainly as a sports club
Rural properties – Businesses in settlements with a population of less than 3,000 can benefit from between 50% and 100% off their rates if they meet the criteria below:
- The sole village shop or post office, with a rateable value of up to £8,500
or
- The only public house or petrol station with a rateable value of up to £12,500
Small business rate relief – Businesses are eligible for small business rate relief, if they only use one property and the rateable value is less than £12,000.
- Properties with a rateable value of less than £6,000 can get 100% relief until 31st March 2015
- Properties with a rateable value between £6,001 and £12,000 will see a gradual decrease from 100% to 0%
- If your business property has a rateable value below £18,000, or £25,000 in Greater London, you are considered a small business. Even though you won’t qualify from relief, you can still have your rates qualified by the small business multiplier, opposed to the standard rate
Transitional rate relief – If the rateable value of your property changes as a result of the national revaluation, which usually occurs every five years, your business rates will adjust gradually.
If you would like more information, please visit the gov.uk website, or alternatively, to find a commercial property anywhere in the UK, there are thousands available for sale and to let with NovaLoca.
