Thursday, 28 August 2008
Do you own an empty commercial property?
If you do, then there are major changes in legislation that may affect your Business Rates liability.
From the 1st April 2008 the law regarding empty property relief changes.
At present an empty property that does not qualify for an exemption is charged at a zero rate for three months followed by a 50% charge. From the 1st April 2008 this will change to 100% charge following the initial three-month zero rate. Any property that has been empty for more than three months on the 1st April 2008 will automatically be charged at 100% from that date.
Where a property is currently exempt due to it being industrial, from 1st April 2008 this exemption will no longer apply. An industrial property will qualify for an initial 6 months zero rate charge followed by a 100% charge. Where an industrial property has been empty in excess of 6 months on the 1st April 2008 a 100% charge will be levied from that date.
At present all other exemptions for empty properties remain, however, Government are currently consulting on what changes, if any, should be made to these.
Further details, including a copy of the bill and accompanying explanatory notes, are available on the Parliament website:
www.publications.parliament.uk/pa/pabills/200607/rating_empty_properties.htm
If you think we hold your details against an empty property incorrectly you should contact us immediately using the details at the top of this page giving details of the sale/lease termination date and the person taking over the property to ensure we charge the correct person.
We have tried to pre-empt some of the questions that ratepayers may have and have put together the following question & answers, however if you have any other queries please contact us.
Q. So what will this mean for my rates liability?
A. As of 1st April 2008, most property that has been empty for more than 3 months – or, in the case of industrial property, for more than 6 months – will no longer receive relief.
Q. Can I get my property taken out of the rating list altogether?
A. If your property is not capable of beneficial occupation – for instance if it is in poor condition and cannot be economically repaired – the 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 the valuation officer will be required to disregard the change in the property’s state when assessing it’s 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.
Q. How will my rates liability be affected if my property is only part occupied?
A. At present the empty property rate applies to the empty part of an apportioned building and the occupied rate applies to the occupied part. Where a property is apportioned after the 1st April 2008 the empty part will receive a 3-month exemption, 6 months if it is industrial. After the initial rate free period the apportionment will cease and the occupied rate will apply to the whole building. This will ensure that occupiers can benefit from any occupied relief to which they are entitled on the whole property and not just the occupied part.
Q. Can I appeal against the changes in my rates liability?
A. The changes in rates liability arising from the changes in legislation are not in themselves grounds for appeal. However, if you disagree with the rateable value that appears in the valuation list you may challenge it by making a proposal against it to the valuation office.
