Business Rates: Empty Properties
Introduction
Section 45 of the Local Government Finance Act 1988 (the 1988 Act) sets the liability of unoccupied property in a local rating list at 100% of the occupied rates. In certain circumstances this liability may be reduced.
Initial period of relief for empty properties
The Non-Domestic Rating (Unoccupied Property) (Wales) Regulations 2008 (the 2008 Regulations) provide for mandatory relief to be granted in the first three months, or six months if classified as industrial, that a non-domestic property is empty.
It further provides that, to qualify for this initial period of relief, the empty property must have been occupied for a period of more than 26 weeks immediately beforehand. Any period of occupation which is less than 26 weeks is disregarded. This avoids the claiming of consecutive periods of relief after short terms of occupancy.
Properties which do not pay empty property rates
The 2008 Regulations also define the types of property which do not pay empty property rates (even after the three-month rate-free period).
These include:
- Properties where occupation is prohibited by law
- Properties kept vacant by reason of certain action taken by the Crown or a local or public authority
- Listed buildings and those subject to preservation notices
- Scheduled monuments
- Properties whose owner is entitled to possession only as a personal representative of a deceased person, liquidator or trustee under a deed of arrangement
- Property whose owner is the subject of insolvency proceedings; and
- Property whose rateable value is less than £2,600.
Empty property relief and charities and CASCs
The 1988 Act provides full charitable relief for unoccupied properties where the ratepayer is a charity or CASC and all eligibility criteria are met.
Relief will be provided where the ratepayer is a charity or trustees for a charity and each of the following applies:
- the local authority is satisfied that a property is unoccupied for a reason related to the charitable purposes of the charity
- the local authority is satisfied that, when next in use, the property will be wholly or mainly used for the charitable purposes of the charity (or of that and other charities)
- the trustees for the charity have provided the local authority with a copy of the charity's most recent accounts; and
- where an annual report is required to be prepared by the charity, the trustees for the charity have provided the local authority with a copy of the charity's most recent report.
Relief will be provided where the ratepayer is a CASC (a registered club for the purposes of section 658 of the Corporation Tax Act 2010) and the local authority is satisfied that, when next in use, the property will be wholly or mainly used for the purposes of that club (or of that and other CASCs).
How to apply
By emailing revenues@powys.gov.uk
You must apply for empty property relief as soon as the property becomes vacant, as it may be necessary for an officer to visit the property to verify entitlement.
Retrospective applications for empty property relief may not be considered unless you're able to provide evidence to prove the property was empty during the period of relief you've applied for.
Where the empty property relief awarded is not time restricted the Local Authority will undertake reviews and inspections to verify on-going entitlement.
It is important that any change in circumstances, including occupation of the property, change of tenancy or ownership are reported within 21 days.
Contacts
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