Empty and partly-occupied properties

The introduction of the Rating (Empty Properties) Act 2007 saw a number of changes to the way rates were calculated for empty and partly-occupied properties. Please browse the following links for more information:

• What is the Rating (Empty Properties) Act?
• How does this affect my rates liability?
• Can I get my property taken off the ratings list altogether?
• Advice for partly-occupied properties
• Can I appeal against the change in my rates liability?

For all other enquiries, please contact our Local Taxation Section at the Civic Centre on (0115) 901 3946, email businessrates@gedling.gov.uk or visit our Reliefs page to apply for Part Occupation Relief.

What is the Rating (Empty Properties) Act?

The Rating (Empty Properties) Act 2007 was introduced to change the way rates liability was managed on empty and partly-occupied properties, specifically aiming to:

• Offer incentive to bring empty properties back into use
• Increase the supply of premises to let
• Improve competitiveness in the UK
• Encourage the development of brownfield sites
• Reduce the need to develop environmentally-valuable greenfield sites.

How does this affect my rates liability?

The Act states that any property that has been empty for more than three months (or six months in the case of industrial properties) will no longer receive rates relief.

Once the initial three-to-six month rate-free period expires, any empty property will be liable for 100% of the basic occupied business rates unless the property:

• Is held by a charity and appears likely to be next used for charitable purposes
• Is held by a community amateur sports club and appears likely to be next used for that purpose
• Qualifies for rates exemption under NNDR (Unoccupied Property) Regulations.

Similarly, listed and small properties with a rateable value of less than £15,000 pay no empty rates even after the first three months have expired.

Can I get my property taken off the rating list altogether?

If your property is not fit for beneficial occupation and cannot be economically repaired, you may request for your local Valuation Officer to consider taking it off the rating list. (External site)

Please be aware that new anti-avoidance legislation means that if your property is damaged for the purposes of avoiding rates, your Valuation Officer will be required to disregard changes in the property's state when assessing its rateable value. For example, if the roof of a property is removed to avoid liability rates then the property may be valued as if the roof was still intact.

Advice for partly occupied properties

If a property is only partly occupied, we may request the Valuation Officer apportions the property’s rateable value between its occupied and unoccupied parts.

Changes brought about by the Act mean that the empty part will receive a complete exemption from rates for the first three months it is empty, extended to six months for industrial properties.

Once the initial rate-free period expires, the apportionment will cease to have effect in most cases and the occupied business rate will apply to the whole property. This ensures that occupiers benefit from any occupied part of a building.

However, if a property qualifies for the new zero-rates or for exemptions when the property is empty, the apportionment will continue to have effect, meaning the owner is no longer liable for rates on the empty part.

Can I appeal against the change in my rates liability?

Please note that changes in rates liability to empty properties as a result of the reforms are not grounds for appeal in themselves. For more information, please visit our Business Rate Appeals page.

Alternatively, please visit the Office of Public Sector Information website to view the Rating (Empty Properties) Act 2007 in full. (External site)

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