Wednesday, August 13th, 2008
Don’t forget the 1 September deadline for claiming relief from business rates.
Small Business Rate Relief applies where the Rateable Value (RV) of business premises is less than £15,000 (£21,500 in London). The amount of relief given depends on the value of the property, but broadly equates to 50 per cent relief where the RV is less than £5,000. The relief reduces on a sliding scale for RVs between £5,000 and £15,000.
Claims have to be made to your local council by 1 September each year, so there is no time to lose.
Property owners are also reminded that changes to the reliefs from business rates were introduced on 1 April 2008. Subject to designated exemptions, empty business properties are now only exempt from business rates for the first three months that they are empty. Industrial and warehouse premises qualify for a six month exemption. After that, full business rates are normally payable.
The scheme described above applies in England and Wales only.
Charities and community amateur sports clubs may be able to obtain a reduction of 80 per cent on business rates bills. In some areas, this could be reduced even further. Other non-profit organisations can apply for up to 100 per cent discretionary relief.
Prior to 1 April 2008, empty commercial property was exempt from the payment of business rates for 3 months and received 50 per cent relief thereafter. Vacant industrial property was exempt altogether. From 1 April 2008 empty offices and shops have received 100 per cent relief for the first 3 months and industrial properties for six months. Thereafter, both receive no relief.
On 13 August, the Independent reported that a planning application had been made, in the wake of the changes to rates payable on empty business premises, to demolish 37,000 square feet of a business park in Sunderland that was unoccupied.
For comprehensive business advice contact Paul Slot now. Free initial consultation if you mention this article.
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