Changes to the Rates Liability of Empty Properties to take effect from 1st April 2008
The Government has reformed empty property relief in order to provide a strong incentive to bring empty property back into use. This will help to increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK, as well as bringing forward brown field sites for re-development and so reduce the need for new development on environmentally valuable green field land.
So what will this mean for my rates liability?
As of 1st 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.
After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate, unless it:
From 1st April 2008 the rate liability of empty property that is held by a charity and appears likely to be next used for charitable purposes, or
is held by a community amateur sports club and appears likely to be next used for the purposes of the club will be reduced from 10% to zero.
The current permanent exemption for empty industrial property will be reduced to six months. A new exemption for empty property held by companies in administration will be introduced. The current exemption for empty property that is listed or subject to a building preservation notice, or has a Rateable Value less than £2,200, or is held by companies in liquidation will be retained.
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:
Valuation Officer
Rufus House
5 Castle Street
Carlisle
CA3 8TJ
