Business rates - Exemptions

Some properties, occupied and unoccupied, are exempt from business rates.

There are several classes of exemption, some of which only apply for a specified length of time.

Owners, or persons entitled to possession may be liable to pay rates on unoccupied property.  

Where premises are unoccupied, rates are charged at 100% of the amount which would be payable if the property was occupied. Liability for unoccupied rates begins three months from the day after the property ceases to be occupied. This is extended to six months in the case of certain industrial properties. If a subsequent “new person” becomes entitled to possession either during or after this three month period a further “free” period can not be given.   

If the property concerned is either a listed building or a small building with a rateable value of less than £2200, you do not have to pay empty property rates even after the first three months have passed.

About this service

The classes shown are in broad terms and qualifying for the particular class of exemption may depend on a number of conditions being met.

Unoccupied Properties 

• unoccupied newly built properties or those where structural alterations or major repairs have taken place (exempt for up to 3 months from completion of work)
• unoccupied hereditaments (exempt for up to 3 months)
• industrial hereditaments ( exempt for up to 6 months )
• hereditaments where occupation is prohibited by law (for example unsafe buildings)
• hereditaments where occupation is prohibited by action taken by the Crown or any local or public authority. 
• listed buildings (subject to a preservation notice under section 58 of the Town and Country planning act 1971)
• ancient monuments (as scheduled under S1 to the Ancient Monuments and Archaeological Areas Act 1979) 
• hereditaments with a rateable value of less than £2200. 
• unoccupied hereditaments where the owner is subject to a bankruptcy order or winding up order under the Insolvency Act 1986. 
• unoccupied hereditaments where the owner is entitled to possession only in his capacity as the personal representative of a deceased person. 
• unoccupied hereditaments where the owner is entitled to possession only in his capacity as a trustee under a deed of arrangement or as a liquidator under the Insolvency Act 1986.
• unoccupied properties owned by charities and Community Amateur Sports Clubs 

Occupied Properties

• agricultural land and buildings (arable meadow or pasture ground; buildings used in connection with agricultural operations on the land and with the keeping and breeding of livestock)
• fish farms
• fishing rights (where these are exercisable in a fishery which is regulated by specific legislation) 
• places of religious worship (where these belong to the Church of England or the Church in Wales. For other religions, the property concerned must be certified under the Places of Worship Registration Act 1855. This exemption includes church halls and similar buildings (provided they are used in connection with a place of public religious worship)
• trinity house property (lighthouses, buoys and beacons)
• sewers and accessories ( drains, sewers, manholes, ventilation shafts and pumps. The exemption does not apply to sewage farms or sewage disposal works)
• property of drainage authorities (structures used for controlling or regulating the flow of water into or out of a watercourse on a main river. 
• parks (provided they are under the management of a relevant authority and are available for free and unrestricted use by members of the public) 
• property used for disabled people ( properties providing facilities for the welfare and training of disabled people)
• air raid protection works. 
• swinging moorings (a buoy attached to an anchor which rests underwater)
• road crossings over watercourses ( bridges, viaducts or tunnels constructed to allow river crossings)
• property in enterprise zones

What you must do

If you believe that you are eligible for exemption from business rates you must:

• complete and return an empty property claim form         

What we must do

What happens next?

On receipt of your application for exemption we will:

• evaluate the form
• notify you of any decision within 10 working days
• issue a revised bill, if required
• remind you of your right to appeal         

Some frequently asked questions

Do I have to pay rates on an empty property?

Am I exempt from paying if part of my home is used for business?

You can view example assessments on the Valuation office agencies website http://www.voa.gov.uk/publications/public_fact_sheets/business_rates_an_intro.html
and can contact them for further guidance, if required