Empty Property Rates
From 1st April 2008 the Government is changing the empty property relief from business rates by charging full business rates to properties that have been empty for three months or more, rather than 50% at present. Also, they are removing the exemption from industrial and warehouse property so that the full rate will be applied if they have been empty for six months or more.
The Government hope to provide a strong incentive to bring such property back into use. This will help to increase the supply of premises to let, reduce business rents and improve the competitiveness of the UK. It will also bring forward brownfield sites for re-development and reduce the need for new development on environmentally valuable greenfield land.
If your premises are industrial and have been empty in excess of 6 months as at 1 April 2008, the exemption will cease on 31 March 2008 and the full charge will be due from 1 April 2008. Other empty property currently subject to a reduction in rates of 50% will cease to receive this discount and the full rates will fall due from 1 April 2008.
The planned changes also include completely exempting from rates empty properties owned by charities and community amateur sports clubs providing those premises appear likely to be next used for charitable purposes. It also puts in place powers to tackle cases of rate avoidance by owners who deliberately vandalise their property in order to avoid paying rates.
The Government hope to provide a strong incentive to bring such property back into use. This will help to increase the supply of premises to let, reduce business rents and improve the competitiveness of the UK. It will also bring forward brownfield sites for re-development and reduce the need for new development on environmentally valuable greenfield land.
If your premises are industrial and have been empty in excess of 6 months as at 1 April 2008, the exemption will cease on 31 March 2008 and the full charge will be due from 1 April 2008. Other empty property currently subject to a reduction in rates of 50% will cease to receive this discount and the full rates will fall due from 1 April 2008.
The planned changes also include completely exempting from rates empty properties owned by charities and community amateur sports clubs providing those premises appear likely to be next used for charitable purposes. It also puts in place powers to tackle cases of rate avoidance by owners who deliberately vandalise their property in order to avoid paying rates.
Can I get my property taken out of the rating list altogether?
If your property is not capable of beneficial occupation - for instance, if it is in poor condition and cannot be economically repaired - your valuation officer may judge that it should be taken out of the rating list altogether. However, please be aware that if the state of your property is damaged for the purposes of avoiding rates, under new anti-avoidance legislation introduced by the Government your valuation officer will be required to disregard the change in the property’s state when assessing its rateable value. So for instance, if the roof is removed from an empty property for the purpose of avoiding rates, it may be valued as if the roof had not been removed.
How will my rates liability be affected if my property is only partly occupied?
If a property is only partly occupied, the billing authority has discretion to request that the valuation officer apportions the property’s rateable value between its occupied and unoccupied parts.
At present, broadly speaking, the empty property rate applies to the empty part of an apportioned building and the occupied business rate applies to the occupied part. From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part will receive a complete exemption from rates for the first 3 months it is empty (or, if it is an industrial property, for the first 6 months). After the initial rate-free period expires, in most cases the apportionment will cease to have effect and the occupied business rate will apply to the whole property. This will ensure that occupiers can benefit from any occupied business rate reliefs to which they are eligible - such as small business rate relief - on the whole of the property, not just the occupied part. However, if the property would qualify for the new zero rate or for an exemption from rates when empty, the apportionment will continue to have effect and the owner will not be liable for rates on the empty part.
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 your local valuation office. Your rights of appeal are not affected by the reforms to empty property relief and you can contact the local valuation office for further information about the arrangements for making proposals. Their details are as follows:
Valuation Office Agency
Spring Gardens House
Princes Street
Swindon
Wiltshire
SN1 2HX
Telephone: 01793 581400
www.voa.gov.uk
What properties are exempt from empty rates?
Under the provisions of the Local Government Finance Act 1988 the rating of unoccupied property is mandatory and the full charge is now due from 1st April 2008.
A property becomes liable to unoccupied rates when on any day all of the conditions set out below are fulfilled.
1) The whole of the property is unoccupied.
2) The person who is liable to pay the unoccupied property rates is entitled to possession of the whole property.
3) The property is shown in the local rating list in force for the year.
4) Regulations do not provide for the property to be exempt from empty property rates.
Local Authorities do not have discretion to vary the percentage of unoccupied property rates chargeable or to exclude classes of hereditament from liability.
There are, however, some classes of non-domestic property which are exempt from liability to pay unoccupied property rates. These are where the following conditions apply:-
At present, broadly speaking, the empty property rate applies to the empty part of an apportioned building and the occupied business rate applies to the occupied part. From 1 April 2008, as a consequence of the reforms to empty property relief, the empty part will receive a complete exemption from rates for the first 3 months it is empty (or, if it is an industrial property, for the first 6 months). After the initial rate-free period expires, in most cases the apportionment will cease to have effect and the occupied business rate will apply to the whole property. This will ensure that occupiers can benefit from any occupied business rate reliefs to which they are eligible - such as small business rate relief - on the whole of the property, not just the occupied part. However, if the property would qualify for the new zero rate or for an exemption from rates when empty, the apportionment will continue to have effect and the owner will not be liable for rates on the empty part.
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 your local valuation office. Your rights of appeal are not affected by the reforms to empty property relief and you can contact the local valuation office for further information about the arrangements for making proposals. Their details are as follows:Valuation Office Agency
Spring Gardens House
Princes Street
Swindon
Wiltshire
SN1 2HX
Telephone: 01793 581400
www.voa.gov.uk
What properties are exempt from empty rates?
Under the provisions of the Local Government Finance Act 1988 the rating of unoccupied property is mandatory and the full charge is now due from 1st April 2008.
A property becomes liable to unoccupied rates when on any day all of the conditions set out below are fulfilled.
1) The whole of the property is unoccupied.
2) The person who is liable to pay the unoccupied property rates is entitled to possession of the whole property.
3) The property is shown in the local rating list in force for the year.
4) Regulations do not provide for the property to be exempt from empty property rates.
Local Authorities do not have discretion to vary the percentage of unoccupied property rates chargeable or to exclude classes of hereditament from liability.
There are, however, some classes of non-domestic property which are exempt from liability to pay unoccupied property rates. These are where the following conditions apply:-
A) Property unoccupied for a period not exceeding three months or six months if an industrial or warehouse property
A property is exempt from unoccupied rates on a day if, on that day, it has not been continuously unoccupied for a period of three months or six months in the case of an industrial or warehouse property. For the purpose only of determining whether a property has been continuously unoccupied, any period of occupation of less than six weeks is disregarded. A period of occupation of less than six weeks which extends beyond or takes place after the three or six month period does not trigger a new three month period of exemption. The occupier of the property is liable for full occupied rates during such period of occupation.
B) Occupation prohibited by law
A property is exempt on any day that its owner is prohibited by law from occupying it or allowing it to be occupied.
C) Kept vacant by reason of action taken by the Crown or any local or public authority
A property is exempt on any day that it is kept vacant due to action taken by the Crown or any local or public authority to prevent occupation or acquire the property.
D) Listed buildings
A property is exempt on any day that it is the subject of a building preservation notice as defined by Section 58 of the Town and Country Planning Act 1971 or is included in a list compiled under Section 54 of that Act.
E) Scheduled ancient monuments
A property is exempt on any day that it is in the Schedule of monuments compiled under Section 1 of the Ancient Monument and Archaeological Areas Act 1979.
F) Small Properties
Properties with a rateable value of less than £2,200.
G) Possession only as a personal representative, liquidator etc.
A property is exempt if the person entitled to possession of it holds it only as a personal representative of a deceased person, a liquidator or trustee under a deed of arrangement or where the owner is the subject of bankruptcy proceedings.
After reading these notes you may be of the opinion that your property may be exempt from payment of empty property rates. If this is the case please write giving full details to:-
North Wiltshire District Council,
Customer Services,
Monkton Park,
Chippenham
Wiltshire
SN15 1ER
Customer Services,
Monkton Park,
Chippenham
Wiltshire
SN15 1ER
Tel: (01249) 706246
Fax: (01249) 443158
Fax: (01249) 443158
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