Unoccupied Property Rating

Empty Property Rates

When a business (non-domestic) property becomes empty, and remains so, there is an initial period during which no rates will be chargeable. This rate-free period will be for a maximum of three months (but for Industrial properties this rate-free period will be for a maximum of 6 months). After this initial exemption period has ended then, unless the property falls within one or more of the exemption categories listed below, a full rate charge (known as Empty Property Rate) becomes payable.

It is important to remember that the three month (six month for Industrial properties) rate-free period applies to the property rather than the ratepayer. So if, for example, you become the new owner of an unoccupied property that has been empty for more than three (six for Industrial properties) months prior to your purchase, you will (unless the property is of a type mentioned in the exemptions listed below) be liable to pay a full rate charge from the date of your purchase.

Also note that any rate-free period will immediately cease upon the property becoming occupied.

Exemptions from the Empty Property Rate charge

Empty Property Rates will not be charged on an empty property if one or more of the following apply -

1. its rateable value is less than £15,000 (£18,000 from 1st April 2010 for one year, this threshold will then reduce back down to £2,600 from 1st April 2011);
2. the owner is prohibited by law from occupying it or allowing it to be occupied;
3. it is kept vacant because a local or public authority or the Crown has taken action with a view to prohibiting the occupation of it or to acquiring it;
4. it is a Listed Building;
5. it is an Ancient Monument;
6. it is under the control of the personal representative of a deceased person;
7. the owner is Bankrupt;
8. it is under the control of a trustee under a Deed of Arrangement;
9. the owner is a company which is subject to a winding-up order or which is being wound up voluntarily;
10. the owner is a company in Administration or which is subject to an Administration Order;
11. the owner is a company in Liquidation;
    Similarly, where the property is empty and either of the following two cases apply, there will be no Empty Property Rates to pay:

The first case is where -

1. the ratepayer is a charity or trustees for a charity,
   and
2. it appears that when next in use the property will be wholly or mainly used for charitable purposes of that charity (or of that charity and other charities).

The second case is where -

1. the ratepayer is a Registered Community Amateur Sports Club (C.A.S.C.)
   and
2. it appears that when next in use the property will be wholly or mainly used for the purposes of that Registered C.A.S.C. (or of that Registered C.A.S.C. and one or more other Registered C.A.S.C.s).

For help and advice on all aspects of business rates please contact the Revenues Team.