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Non Domestic Rates - when you may pay less

The Charge for Empty Properties

When a property becomes vacant it is exempt from rates for three months if it remains vacant. A 100% business rate charge will then apply to most properties that have been empty for three months or more, or six months or more in the case of industrial and warehouse property. It is important to note that the three month rate free period applies to the property only. Therefore, if you purchase an empty property you will be immediately liable for empty rates if it has been vacant for more than three months prior to you buying it.

Are there any exemptions to this charge?

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 is held by a charity and appears likely to be next used for charitable purposes.
• It is held by a community amateur sports club and appears to be next used for the purpose of the club.
• The rateable value of the property is less than £2200
• The owner is prohibited by law from occupying the property.
• The owner is prohibited by action taken by the Crown, or any other local or public authority from occupying the premises.
• The property is included in the schedule of monuments compiled under s.1 to the Ancient Monuments and Archaeological Areas Act 1979.
• The owner is entitled to possession only in his capacity as the personal representative of a deceased person.
• Subject to a building preservation notice per Section 58 Town & Country Planning Act (1971), or in a list under section 54 of the Act.

If the following insolvency or debt administration situation exists: 

• A bankruptcy order within parts 8 to 11 of the Insolvency Act 1986. 
• The owner is a trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914 applies. 
• The owner is a company subject to a winding up order made under the Insolvency Act 1986. 
• The owner is entitled to possession of the property in his capacity as liquidator under s112 or s145 of the Insolvency Act 1986.

Anti - Avoidance legislation

If property is damaged in order to avoid paying rates the valuation office will be required to disregard the change in the properties state when assessing it's rateable value. For instance if the roof is removed from an empty property for the purpose of avoiding rates, it may be valued as if the roof had not been removed and rates will still be payable.

Please contact the Local Taxation Section for more information.
 

Other possible reductions

Exemptions
Hardship relief
Mandatory charity relief
Mandatory CASC (Community amateur sports club) relief
Discretionary rate relief