Empty property rates are payable on most commercial properties by the 'person entitled to possession'. This is usually the leaseholder or tenant if there is one, or the freeholder if not.
You don't have to pay business rates on empty buildings for the first three months the building's empty. This period is extended to six months for properties classed as industrial, such as factories, warehouses or workshops.
After the three month exemption, you'll pay 100% of the occupied rate, unless one of the following exemptions applies:
- the rateable value is less than £2900 (£2600 prior to 1 April 2017)
- the property, when next in use, is likely to be occupied by a charity or community sports club
- occupation is prohibited by law
- the property's empty due to action taken by the crown or by any public or local authority, either to prevent occupation or to acquire the property (for example, a compulsory purchase order's been made)
- the property's a listed building or subject to a preservation order
- the person liable for the property is so only in their capacity as a personal representative of a deceased person, a liquidator, or a trustee under a deed of arrangement
- the person entitled to possession of the property is the subject of insolvency proceedings or the owner is a company in administration
How to apply
You must apply for empty property relief as soon as the property becomes vacant, as it may be necessary for an officer to visit the property to verify your claim.
Retrospective applications for empty property relief will not be considered unless you're able to provide evidence to prove the property was empty during the period of relief you've applied for.