As of 1 April 2008, most property that has been empty for more than three months – or, in the case of industrial property, for more than six months – will no longer receive relief from rates.
The Government is temporarily increasing the threshold at which an empty property becomes liable for business rates. For financial year 2009-10, empty properties with a rateable value of less than £15,000 will be exempt from business rates, exempting an estimated 70 per cent of empty properties. With effect from 1 April 2010 this threshold will increase to £18,000. This one year relief for lower-value properties is best targeted at helping small businesses manage short-term pressures due to difficult property market conditions.
Other exemptions from empty rate charges are, if the property:
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 purposes of avoiding rates, it may be valued as if the roof had not been removed.
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.
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 this authority of the local valuation office for further information about the arrangements for making proposals.
If you want to apply to take a property out of rating or to appeal against the rateable value of your property contact the Valuation Officer at:
Derby Valuation Office
4th Floor
St Peter’s House
Gower Street
Derby
DE1 1JJ
Telephone 01332 710800
Email: eastmidlandsgroup.vo@voa.gsi.gov.uk
Website: www.voa.gov.uk (External website**). Further information can also be found at www.2010.voa.gov.uk/rli/ (External website**).
If you want to talk to High Peak Borough Council about your business rate account, please contact the Business Rates section on 0845 129 77 77 or 01298 28400, email nndr@highpeak.gov.uk or write to The Council Offices, Hayfield Road, Chapel-en-Le-Frith, High Peak, SK23 0QJ.
**Please note: High Peak Borough Council is not responsible for the content of any external websites.