The Government has reformed empty property relief in order to provide a strong incentive to bring empty property back into use.
This will help to increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK, as well as bringing forward brownfield sites for re-development and so reduce the need for new development on environmentally valuable greenfield land. The reforms to empty property relief have consequential impacts for the rates liability of partly occupied properties that have been apportioned.
So what will this mean for my rates liability?
As of 1 April 2008, 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. 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:
• 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 a community amateur sports club and appears likely to be next used for the purposes of the club,will be reduced from 10% of the basic occupied rate to zero.
• qualifies for an exemption from rates under the NNDR (Unoccupied Property) Regulations. Whilst the permanent exemption for industrial property has been reduced to six months, the Government has preserved the majority of the other exemptions. Having considered the responses received following consultation the Government has retained the existing permanent exemption for empty listed buildings and introduced a new permanent exemption on empty property rates for companies in administration.
Can I get my property taken out of the rating list altogether?
If your property is not capable of beneficial occupation - for instance, if it is in poor condition and cannot be economically repaired - your valuation officer may judge that it should be taken out of the rating list altogether. Following consultation, the decision to make regulations to deal with potential tactics to avoid empty property rates has been deferred. The Government will monitor any incidents and is prepared to use its new powers to address such activity if the evidence suggests it is necessary.
More Information
The Council has written to all those rate payers that have been identified, based on their existing circumstances, as likely to be affected by these changes. Below are examples of the letters sent to those rate payers.
Empty Industrial Properties.pdf (PDF , 9KB)
Empty Property Relief.pdf (PDF , 9KB)
