{"id":184,"date":"2013-11-01T16:19:12","date_gmt":"2013-11-01T16:19:12","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blsblog\/?p=184"},"modified":"2013-11-01T16:19:12","modified_gmt":"2013-11-01T16:19:12","slug":"commercial-property-update-november-2013","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/commercial-property-update-november-2013\/","title":{"rendered":"Commercial Property update &#8211; November 2013"},"content":{"rendered":"<p>This month&#8217;s update sets out the exemptions from business rates for non-domestic properties.<\/p>\n<p><strong>Retail property<\/strong><\/p>\n<p>Retail properties enjoy 100% relief for a continuous period of three months only. Changes of ownership during the three-month period do not trigger a fresh three-month exemption. The exemption applies to the property, not the person paying the rates.<\/p>\n<p>Short-term occupation of the property (of six weeks or less) by, for example, a tenant or licensee during the three-month period will be ignored. The three-month period and the business rates exemption will continue to run during that period of short-term occupation. This rule prevents owners from gaining additional periods of rates exemptions by establishing a temporary letting.<\/p>\n<p>If the property is let or occupied for a period of more than six weeks, the rates exemption will end at the start of that period, but when the property becomes vacant again, a new exemption period can be claimed.<\/p>\n<p><strong>Industrial and warehouse property<\/strong><\/p>\n<p>Industrial and warehouse properties are entitled to 100% relief for a continuous period of six months only.\u00a0 Short-term occupation of the property (of six weeks or less) by, for example, a tenant or licensee during the six-month period will be ignored.<\/p>\n<p><strong>Other exempt properties<\/strong><\/p>\n<p>There are number of other exempt properties which include:<\/p>\n<ul>\n<li>Properties whose owner is prohibited by law from occupying it or allowing it to be occupied (for example, where there has been a breach of fire safety and a prohibition notice has been served).<\/li>\n<li>Properties that cannot be occupied due to the action of a public authority (for example, where the property is closed due to a prohibition order for health and safety reasons).<\/li>\n<li>Listed properties (including property that forms part only of a listed property).<\/li>\n<li>Empty properties:<\/li>\n<\/ul>\n<ol>\n<li>with a rateable value below a certain threshold (\u00a32,600 from 1 April 2011);<\/li>\n<li>whose owner is entitled to possession in their capacity as trustee under a deed of arrangement;<\/li>\n<li>owned by individuals subject to a bankruptcy order;<\/li>\n<li>owned by a company subject to a winding up order; and<\/li>\n<li>owned by a company in administration. However, an administrator is liable to pay business rates where property is being used (for example, where a company in administration continues to trade from the property).<\/li>\n<\/ol>\n<p><strong>Small business rate relief<\/strong><\/p>\n<p>Where a property is occupied by a small business and it has a rateable value below \u00a318,000 (\u00a325,500 in Greater London), the business may be entitled to a discount of up to 50% on its rates bills.<\/p>\n<p>We would also mention that until 31 March 2014, there is full relief for eligible small businesses occupying property with a rateable value of up to \u00a36,000 and tapering relief for businesses with a rateable value of up to \u00a312,000.<\/p>\n<p><strong>Zero rating<\/strong><\/p>\n<p>Certain property is \u201czero rated\u201d where the property is empty and the property owner is:<\/p>\n<ul>\n<li>A charity and it appears that, when the property is re-occupied, it will be wholly or mainly used for charitable purposes (whether of that charity or that of other charities).<\/li>\n<li>A community amateur sports club (CASC), where it appears that when the property is re-occupied, it will be wholly or mainly used for the purposes of that CASC (or for the purposes of that and another CASC).<\/li>\n<\/ul>\n<p>Empty properties held by charities or CASCs pending disposal for other purposes will not benefit from zero rating.<\/p>\n<p><strong>Discretionary relief and New Commercial Buildings<\/strong><\/p>\n<p>The local council has discretion to grant relief in certain situations.\u00a0 In particular, we would mention that With effect from 1 October 2013,\u00a0 new empty rates property relief is available for new commercial buildings that are constructed after that date but before 30 September 2016 and which are unoccupied for the first 18 months after completion of their construction.\u00a0 Where relief is granted the government is to reimburse the local council for the amount of the discretionary relief.<\/p>\n<p>Guidance has been pulished by the government for local councils and businesses to determine if a property meets the qualifying criteria which provides\u00a0 that a property must:<\/p>\n<ul>\n<li>Be an unoccupied non-domestic heriditament comprised wholly or mainly of qualifying new structures.<\/li>\n<li>Have been completed after 1 October 2013 and before 30 September 2016, and less than 18 months before the date the relief is granted.<\/li>\n<\/ul>\n<p><strong>Partial occupation<\/strong><\/p>\n<p>When a property is partly occupied, the property owner may apply via the local council to the Valuation Office Agency to have the rateable value split to reflect the occupied and unoccupied areas.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This month&#8217;s update sets out the exemptions from business rates for non-domestic properties. Retail property Retail properties enjoy 100% relief for a continuous period of three months only. Changes of ownership during the three-month period do not trigger a fresh three-month exemption. The exemption applies to the property, not the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1487,1491],"tags":[265,561,1672,1787,1921],"class_list":["post-184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-business","category-commercial-property-2","tag-case-studies","tag-commercial-property","tag-dispute-update","tag-legal-updates","tag-retail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commercial Property update - November 2013 | Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tayloremmet.co.uk\/blogs\/commercial-property-update-november-2013\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commercial Property update - November 2013 | Blogs\" \/>\n<meta property=\"og:description\" content=\"This month&#8217;s update sets out the exemptions from business rates for non-domestic properties. 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