Unoccupied property

Central Government is currently changing the legislation regarding the rating of empty non-domestic properties.

At present if a non-domestic property is not being used and is left empty, it will be exempt from business rates for three months. After that it will be charged at 50% of the occupied charge.

Certain properties are exempt from the unoccupied 50% charge. They are:

• The owner is prohibited by law from occupying the property (e.g. no fire certificate)
• Kept vacant by action of the Crown or local authority (e.g. a compulsory purchase)
• It is a listed building
• It is a scheduled monument
• It is an industrial property such as a factory or warehouse
• The rateable value is less than £1900
• The owner is the representative of a deceased person
• The owner is bankrupt, subject to a winding up order or deed of arrangement
• The owner is a liquidator of a company

From the 1st April 2008 full business rates will be payable on business premises that have been empty for more than three months, or six months in the case of industrial and warehouse property.

Empty properties held by a Charity or a Community Amateur Sports Club (CASC) will be exempt from the empty rates. It is intended that these changes will encourage owners to re-let, re develop or sell unused property.

Last Updated: 18 October 07,
Review Date: 20 September 2005