Exemptions
Unoccupied property relief
You will not have to pay business rates in the first three months that a property is empty. This is extended to six months for certain industrial properties. After this time, you must pay rates in full unless one of the exemptions below applies:
(In most cases, the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs).
Qualifying industrial hereditament
An unoccupied 'qualifying industrial hereditament' is exempt for the first six months after the date it was last occupied. It is defined as any hereditament other than a retail one when all buildings comprised in the hereditament are:
- Properties constructed or adapted for use in the course of a trade or business
- Properties constructed or adapted for use as storage, processing of minerals, the generating of electricity and the manufacturing or repair of goods or materials.
Occupation prohibited by law
An unoccupied property is exempt if its owner is prohibited by law from occupying it or allowing it to be occupied. This might arise when a local authority has taken legal action to prevent occupation on the grounds of health and/or safety or where occupation would lead to action by the relevant authority or body to bring occupation to an end.
Listed buildings
This is an unoccupied property which is subject of a building preservation notice or which is included in a list of buildings of special architectural or historic interest.
Ancient monuments
These are all unoccupied properties included in the schedule of ancient monuments.
Minimum rateable value
Unoccupied properties within England with a rateable value of less than £2,900 are exempt from business rates.
Insolvency and debt administration
Exemption from liability on unoccupied properties also applies to these cases:
- The owner is a company subject to a winding-up order
- The property is in possession by a liquidator
- A bankruptcy order has been served on the owner's estate
- An owner is entitled to possession of the property as trustee under a deed arrangement.