As of 1 April 2008, most property that has been empty for more than three months - or, in the case of industrial property, for more than six months - will no longer receive relief from rates.
So what will this mean for my rates liability?
After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate, unless it:
a) Qualifies for the new zero rate provided by the rating (Empty Properties) Act 2007. From 1 April 2008, the rates liability of empty property that is held by a charity and appears likely to be next used for charitable purposes, or that is held by community amateur sports club and appears likely to be next used for the purposes of the club, will reduce from 10% of the basic occupied rate to zero.
b) Qualifies for an exemption from rates under NNDR (Unoccupied Property) Regulations.
i) for empty property that is listed or subject to a building preservation notice:
ii) for empty property held by companies in liquidation and held by companies in administration.
How will my rates liability be affected if my property is only partly occupied?
If a property is only partly occupied, the billing authority has discretion to request that the valuation officer apportions the property’s rateable value between its occupied and unoccupied parts.
From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part will receive a complete exemption from rates for the first 3 months it is empty (or, if it is an industrial property, for the first 6 months).
After the initial rate-free period expires, in most cases the apportionment will cease to have an effect and the occupied business rate will apply to the whole property.
This will ensure that occupiers can benefit from any occupied business rate relief’s to which they are eligible, such as small business rate relief, on the whole of the property, not just the occupied part.
However, if the property would qualify for the new zero rate or for an exemption from rates when empty, the apportionment will continue to have effect and the owner will not be liable for rates on the empty part.
To apply download and complete the Part Occupied/Unoccupied Rates Relief application form.
Can I appeal against the change in my rates?
The changes in rates liability arising from the reforms to empty property relief are not in themselves grounds for appeal.
However, if you disagree with the rateable value that appears in the current rating list entry for your property, under the existing arrangements you may challenge it by making a ‘proposal’ against it to your local valuation office.
Your rights of appeal are not affected by the reforms to empty property relief and you can contact the local valuation office or the business rates section for further information about the arrangements for making proposals. Contact details and website link to the right.
There will be no legal right to withhold payment even where an appeal is made.
How to apply for empty property rates
You need to contact the business rates section, in writing, at the time the property becomes empty. Contact details to the right.
If you apply for empty property rates after the property becomes empty, you will have to supply documentary evidence to support your application.