Changes to Non Domestic Rates Liability for Unoccupied Property

The Government announced in the 2007 budget that they intend to change the amount of relief awarded to empty non domestic property. These changes take effect from the 1 April 2008.

The changes apply to all Non Domestic premises in England.

The major changes are:

• The empty property rate will increase from 50% to 100% of the occupied rate from 1 April 2008.
• Industrial properties will cease to be exempted from empty property rates and will have to pay the full empty property rate.
• Empty properties owned by charities or community amateur sports clubs will not be subject to empty rates.

Are there any exemptions?

The following exemptions from empty property rates will apply:

• Properties which been unoccupied for a continuous period not exceeding three months, except for industrial properties where the  period of exemption is six months;
• Properties whose owner is prohibited by law from occupying it or allowing it to be occupied;
• Properties kept vacant by reason of action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting the occupation of the property or to acquiring it;
• Properties whose rateable value is less than £2,200;
• Listed buildings and ancient monuments
• Properties under the control of the personal representative of a deceased person;
• Properties whose owner is subject to a bankruptcy order within the meaning of section 381(2) of the Insolvency Act 1986
• Properties whose owner is a company which is subject to a winding-up order, a company in administration, or in liquidation.

What if my property is in a poor condition and/or not capable of beneficial occupation?

If your property is not capable of beneficial occupation – for instance, if it is in poor condition and cannot be economically repaired or, is undergoing major renovation works which render the property incapable of occupation – the Valuation Officer may remove it from the Local Rating List. It is your responsibility to approach the Valuation Officer and request that the property be removed from the rating list altogether. (See Frequently Asked Questions)

In the meantime, whilst the property remains in the local rating list the non domestic rates are due and payable.

Can I appeal against the changes in my rate liability?

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 local rating list you may appeal direct to the Valuation Officer in Leeds. (See Frequently Asked Questions)