New Rules On Empty Business Properties

Important changes to Business Rates legislation

This section is to advise you about changes to empty property rates that take effect from 1 April 2008.

The Government is committed to promoting the efficient use of land and property. It is therefore taking action to modernise the rules surrounding the reliefs awarded to empty properties for non-domestic rates. This will provide a positive incentive to bring vacant shops, offices, factories and warehouses back into use.

The new rules for empty properties

Offices and retail premises

Currently empty office and retail premises receive a 100% exemption for the first 3 months and 50% thereafter.

Properties that become empty after 1 April 2008 will still receive the 100% exemption for the first 3 months only, and after that time the full amount of Business Rates will have to be paid.

Properties that are already empty on 1 April 2008 will continue to receive the remainder of their 3 months exemption (if this has not already expired) and will then pay the full charge.

Industrial premises

The rules for industrial premises and warehouses are also changing. Currently these types of properties receive a 100% exemption indefinitely. Properties that become empty after 1 April 2008 will still receive 100% exemption for the first 6 months.

However after that, no exemption will be awarded and the full amount of Business Rates will have to be paid.

Properties that are already empty in April 2008 will continue to receive the remainder of their 6 months exemption and will then pay the full charge.

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