Empty Properties & Exemptions

When a property becomes vacant, it is exempt from rates for three months if it remains vacant, or six months for qualifying industrial properties (please see below).

At the end of this period, rates become payable at the normal rate.

Empty rates continue to be payable until somebody occupies the property. It is important to note that the three/six month rate free period applies to the property only.

Therefore, if you purchase an empty property you will be immediately liable for empty rates if it has been vacant for more than three/six months prior to you buying it.

If you think your business should have received an exemption for any period it was empty, please contact us.

Certain industrial hereditaments are exempt from Business Rates for a period of up to six months from the date on which the property became vacant.

In order to qualify for this exemption the property must meet certain criteria. All buildings comprised in the assessment must be:

1. constructed or adapted for use in the course of trade or business
2. constructed or adapted for use for one or more of the following purposes and one or more purposes ancillary thereto:

• the manufacture, repair or adaptation of goods or materials, or the subjection of goods or materials to any process
• storage (including storage or handling of goods in the course of their distribution)
• the working or processing of minerals
• the generation of electricity

Exclusions

Retail hereditaments do not qualify under this scheme.

The above regulations shall not apply where any building or any part of any building comprised in the assessment is constructed or adapted for the purpose of the retail provision of:

• goods
• services, other than storage or distribution services, on or from the assessment

If you think your business should have received an exemption for any period it was empty, please contact us.

An exemption will apply if the unoccupied property is kept vacant by Crown or local or public authority action which has been taken with a view to prohibiting its occupation or to acquiring it

An unoccupied property is exempt from business rates if it is subject of a building preservation notice as defined by Section 58 of the Town and Country Planning Act, 1971 (b) or is included in a list compiled under Section 54 of that Act

Ancient Monuments are exempt if they are included in the schedule of monuments compiled under Section 1 of the Ancient Monuments and Archaeological Areas Act, 1979

An unoccupied property is exempt from business rates if the owner is prohibited by law from occupying a hereditament or from allowing it to be occupied.

A property is exempt from business rates if it is unoccupied and it's rateable value of the property is less than £2,899.

An unoccupied property is exempt from business rates if the owner is entitled to possession only in his capacity as the personal representative of a deceased person

An unocupied property is exempt from business rates if there subsists in respect of the owner's estate a bankruptcy order within the meaning of Parts VIII to XI of the Insolvency Act, 1986

Unoccupied properties are exempt where the owner is only entitled to possession in their capacity as the trustee under a deed of arrangement made under the Deeds of Arrangement Act 1914.

Unoccupied properties are exempt where the owner is a company in administration within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 or is subject to an administration order made under the former administration provisions within the meaning of article 3 of the Enterprise Act 2002 (Commencement No. 4 and Transitional Provisions and Savings) Order 2003(e).

Unoccupied properties are exempt where the owner is only entitled to possession in their capacity as the liquidator in the winding up of a company made under Section 112 Insolvency Act 1986. Liquidated Limited companies cannot trade after the date of liquidation.

Properties that are left unoccupied by a charity are exempt from business rates if the premises will be occupied for charitable purposes when next in use.