A business property is empty for rating purposes
when all removable goods and chattels have been removed. Fixtures
and fittings eg shop counters or built in display units do not need
to be removed.
Changes to the Rates Liability of Empty Properties that took
effect from 1st April 2008
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 brown field sites for
re-development and so reduce the need for new development on
environmentally valuable green field land.
So what will this mean for my rates liability?
As of 1st April 2008, most 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 1st April 2008 the rate liability of empty property that is
held by a charity and appears likely to be next used for charitable
purposes, or 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% to zero.
- Qualifies for an exemption from rates under the
NNDR (Unoccupied Property) Regulations.
The previous permanent exemption for empty
industrial property has been reduced to six months. A new exemption
for empty property held by companies in administration has been
introduced. The exemption for empty property that is listed or
subject to a building preservation notice, or has a Rateable Value
less than £2,200, or is held by companies in liquidation has been
retained.
Can I appeal against the change in my rates 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 rating list entry for your property, under
the existing arrangements you may challenge it by making a
'proposal' against it to:
Valuation Office Agency
Rufus House
5 Castle Street
Carlisle
CA3 8TJ
Empty property relief will usually be calculated
automatically from information supplied at the time of sale or
purchase, but if you receive a bill for an empty property which
does not show the correct reduction please telephone (01768) 212220
or email brates@eden.gov.uk
