Empty properties

Non-Domestic Rates will not be payable in the first 3 months that a property is empty (6 months for industrial properties). After this period rates are payable in full.

Empty property rate exemptions from 1 April 2011

  • Empty property with a rateable value below £2,600 - this is a decrease from the previous rateable value limit of less than £18,000. Empty properties with a rateable value of £2,600 and above will be subject to a three month exemption followed by a 100 per cent charge when the exemption ceases.
  • Where liability falls on a charity and the property appears likely to be next used for charitable purposes.
  • Where liability falls on a community amateur sports club and the property appears likely to be next used for the purpose of the club.
  • Empty listed buildings and property included in a schedule compiled under the Ancient Monuments and Archaeological Areas Act 1979(b).
  • Empty property where the ratepayer is subject to insolvency action.
  • Occupation is prohibited by law.
  • The owner is entitled to possession only in his/her capacity as personal representative of a deceased person.

Section 44a Relief - partly occupied property
Ratepayers are liable for full non-domestic rates whether a property is wholly occupied or only partly occupied. However, in certain instances, the Council has the discretion, if part of a property becomes temporarily vacant, to award relief in respect of the unoccupied part.  This is called Section 44a relief.

We will arrange to inspect the premises in order to verify the empty parts. If we agree that the property would qualify for the relief, we will ask the valuation officer to apportion the rateable value between the occupied and unoccupied parts.

The unoccupied part is exempt from rates for the first 3 months it is empty (or, if it is an industrial property, for the first 6 months). After the initial rate-free period ends, in most cases the apportionment will cease to have effect and the occupied business rate will apply to the whole property. 

However, if the property would qualify for the new zero rate or for an exemption from rates when empty, the apportionment will continue to have effect and the empty part would remain rate-free. The relief ceases at the end of the financial year or sooner if the whole premises are vacated or the empty part is reoccupied.

If you would like to apply for Section 44a Relief, please write to us including the following details:

  • what led to the partial occupation;
  • a plan of the premises, clearly showing the vacant parts;
  • what your future intentions are as regards the unoccupied part, for example, will it be reoccupied following refurbishment?
  • the date when you expect the property to be fully occupied again.

If you do apply for Section 44a relief, please remember that you must continue to pay your rate instalments as shown on your bill while your application is being processed.

Taking a property out of rating
If your property is not capable of beneficial occupation – for instance, if it is in poor condition and cannot be economically repaired – the Valuation Office may decide it should be taken out of rating altogether. However, if a property is damaged for the purposes of avoiding rates, under new anti-avoidance legislation introduced by the Government the Valuation Office will be required to disregard the change in the property’s state when assessing its rateable value.  

If you want to find out more about empty property rates, please telephone us on: 01395 517445 or e-mail: revenues@eastdevon.gov.uk

Page last updated on 21 November 2011