Unoccupied property rating

Changes to unoccupied property rates from April 2008

The Rating (Empty Properties) Act 2007 has introduced changes to empty property relief. From 1 April 2008, property that has been empty for more than three months (or six months for industrial property), will no longer be exempt from empty property rates unless it falls into one of the following categories: 

• unoccupied properties owned and likely to be next occupied by charities and Community Amateur Sports Clubs 
• unoccupied properties owned by Companies in Administration 
• where occupation is prohibited by law
• where a property is kept empty due to action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting occupation
• certain listed buildings or where the building is the subject of a building preservation notice or it is scheduled as an ancient monument
• where the rateable value is less than £2,200.
• where the person entitled to possession of the property is acting in the capacity as:
  • a personal representative of a deceased person
  • a liquidator or as a trustee under a deed of arrangement or where the owner is the subject of bankruptcy proceedings.

Prior to 1 April 2008

Rates are charged at 50% of the full rate bill (or of the transitional bill where the transitional arrangements apply). Liability begins after the property has been empty for 3 months. Unoccupied properties do not qualify for Small Business Rate Relief.

Certain types of property are exempt from empty property rates. The full list of exemptions prior to 01/04/08 is shown below.

Exemptions

The following properties are exempt from Business Rates:

• where occupation is prohibited by law
• where a property is kept empty due to action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting occupation
• certain listed buildings or where the building is the subject of a building preservation notice or it is scheduled as an ancient monument
• Where the rateable value is less than £2,200.
• Where the person entitled to possession of the property is acting in the capacity as:
  • a personal representative of a deceased person
  • a liquidator or as a trustee under a deed of arrangement or where the owner is the subject of bankruptcy proceedings.
• qualifying industrial properties, excluding any retail properties
• qualifying industrial properties are those which have been constructed or adapted for use in the course of a trade or business; and for use for one or more of the following purposes:
  • The manufacture, repair or adaptation of goods or materials or where any goods or materials are subject to any process. 
  • The storage or handling of goods in the course of their distribution. 
  • The working or processing of minerals. 
  • The generation of electricity. 

If you would like more information about property exemptions, contact Local Taxes.

You can notify Local Taxes of an unoccupied property or make a claim for an exemption, use the following e-form.