Changes to business rates and empty property rate relief
Note: This is our original regulation update text, published on 31 March 2008. Unlike the rest of our site, this archived material is not updated if the law changes.
Relevant to
All non-domestic property owners and managers in England
Took effect on
1 April 2008
From 1 April 2008, new regulations will replace the previous rules on empty property rate relief.
The core element is that after a certain period of exemption, you will have to pay the same rate for unoccupied properties as for occupied properties. The exemption period for industrial properties will be six months. It will be three months for all other non-domestic properties.
This means that if you own an empty non-domestic property - other than a qualifying industrial property - you will have an initial rate-free period of three months. If the premises remain vacant beyond three months, you will be liable for payment of the full 100 per cent occupied rate.
If your qualifying industrial property has fallen vacant, you will have a six-month period during which you will not have to pay business rates. If the property remains empty, you will be liable for the full 100 per cent rate after that point.
The business rate for empty non-domestic properties owned by charities and community amateur sports clubs will be reduced from ten per cent to zero.
Permanent exemptions
The regulations also introduce a full and permanent exemption from empty property rates for companies in administration. The exemption will apply until the end of the administration and is in addition to exemptions already in force for individuals who are bankrupt, and companies in liquidation.
- Download the summary of consultation replies on modernising empty property relief from the Communities and Local Government website (PDF) - Opens in a new window
- Read about the exemption from business rates for companies in administration on the Communities and Local Government website - Opens in a new window
- Download the explanatory memorandum to the un-occupied property rules from the Office of Public Sector Information website (PDF) - Opens in a new window
Full title of regulation
Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 [SI 2008 386]
From
Communities and Local Government
CLG Helpline
0303 444 0000
Actions
- Download the summary of consultation replies on modernising empty property relief from the Communities and Local Government website (PDF) - Opens in a new window
- Read about the exemption from business rates for companies in administration on the Communities and Local Government website - Opens in a new window
- Download the explanatory memorandum to the un-occupied property rules from the Office of Public Sector Information website (PDF) - Opens in a new window
- Get a personalised list of regulations from our Regulation checklist
