Empty Properties
Please note that from the 1st April 2008 the law regarding empty property relief changes.
Previously an empty property that did not qualify for an exemption was charged at a zero rate for the first three months followed by a 50% charge. From the 1st April 2008 this will change to 100% charge following the initial three months zero rate. Any property that has been empty for more than three months on the 1st April 2008 will automatically be charged at 100% from that date.
Industrial properties (for example, factories, workshops, warehouses) were previously exempt from empty property rate. From the 1st April 2008 this exemption will no longer apply. An industrial property will qualify for an initial six months zero rate charge followed by a 100% charge. Where an industrial property has been empty in excess of six months on the 1st April 2008, a 100% charge will be levied from that date.
Properties owned by charities and community amateur sports clubs will not be liable to empty property rates if the properties’ next use is likely to be wholly or mainly for charitable purposes or for the purposes of a sports club.
The rates liability arising form the changes in legislation are not in themselves grounds for appeal. You can appeal to the valuation office (contact details are given in the next section) if you disagree with the rateable value of the property or if it is in poor condition and cannot be economically repaired. The valuation officer may reduce the rateable value or take it out from the rating list altogether.
The owner or the leaseholder is liable to pay rates for an empty property. The exemptions from empty property rates are:
- Properties unoccupied for first three months (extended to six months for industrial properties). This exemption always starts from the date the property first becomes empty. If you buy or lease a property that is already unoccupied, this exemption does not start again when you acquire the property.
- Properties with a rateable value of less than £2,200.
- Certain listed buildings or where the building is the subject of a building preservation notice or it is scheduled as an ancient monument.
- Properties where occupation is prohibited by law.
- Properties that are kept empty following action taken by or on behalf of the Crown or any local or public authority to prohibit occupation of the property or to acquire it.
- Where the person entitled to possession of the property is acting in the capacity as:
- A personal representative of a deceased person
- A liquidator, an administrator or as a trustee under a deed of arrangement or where the owner/leaseholder is the subject of bankruptcy proceedings – this is up to the date that the property is sold or the lease is disclaimed by the Official Receiver or the Insolvency Practioner.
You will not have to apply for any of these exemptions but if you receive a bill and you think the property should be exempt, you should contact us immediately.
Partly occupied properties:
Generally the full rate applies but where a property is partly occupied for a short time we have discretion in certain cases to award relief in respect of the unoccupied part by apportioning the rateable value between the occupied and the unoccupied parts.
Previously the empty property rate applied to the empty part of an apportioned building and the occupied rate applied to the occupied part. Where a property is apportioned after the 1st April 2008, the empty part will receive a 3-month exemption, 6 months if it is industrial. After the initial rate free period the apportionment will cease and the occupied rate will apply to the whole property and not just the occupied part.
Further information about business rates is available from the following websites:
A leaflet containing general information on changes to the rates liability of empty and partly occupied properties from 1 April 2008 is available here.