Business Rates - changes to the empty property rate - Frequently asked questions:

 

• What is changing?
• Will there be any exemptions?
• I am already receiving an empty property rate.  Will I get a three or six month exemption from the 1^st April?
• I am currently paying a 50% empty rate.  Will this change?
• Who is liable to pay the 100% rate if there is no-one in the property?
• My property is currently exempt from rates while it is empty.  Is this going to continue?
• What other exemptions from the empty rate are there?
• Why is this changing?
• Can I take my property out of the rating list completely?
• My property is only partly occupied.  How will this be affected?
• Can I receive any rate relief on the empty property?
• Can I appeal against the change in my rates liability?

 

What is changing?

From the 1^st April 2008 the empty property rate will change from the current 50% to 100%.  There will therefore be no difference in the charge if your property is occupied or unoccupied.

 

Will there be any exemptions?

A property will receive a three-month exemption from rates from the day it becomes vacant.  If your property is an industrial, the exemption will be for six months.  After this period the full 100% rate will be due.

 

I am already receiving an empty property rate.  Will I get a three or six month exemption from the 1^st April?

A property receives the exemption from the date it becomes vacant.  If your property became vacant before the 1^st April 2008, then the exemption started from that date and you will not receive any further exempt periods.

 

I am currently paying a 50% empty rate.  Will this change?

From the 1^st April 2008 your 50% bill will increase to the full 100% rate until your liability ceases.

 

Who is liable to pay the 100% rate if there is no-one in the property?

The person entitled to possession of the property is the person responsible for paying the rates.  This could be the owner, a tenant, or another person, depending on the circumstances.   

 

My property is currently exempt from rates while it is empty.  Is this going to continue?

Up until the 1^st April 2008, industrial premises were exempt from rates for as long as they were vacant.  After this date, and following the six month exemption period, there will be a 100% charge as with any other property.

If your property is exempt because it is a listed building or it has a rateable value of less that £2,200, it will continue to be exempt from empty property rates.

 

What other exemptions from the empty rate are there?

A property will also be exempt from the empty rate if it was left vacant by a company in liquidation, or if the previous liable person is now deceased.  In addition, after the 1^st April, properties will be exempt from the empty rate if they are held by a charity and will be used for charitable purposes when reoccupied. 

 

Why is this changing?

The Government has introduced these changes to encourage derelict and unused premises to be brought back into use.  This will in turn reduce the amount of green field sites needed for new properties and will encourage rent reductions through increased supply.

 

Can I take my property out of the rating list completely?

If your property is derelict and is no longer capable of beneficial occupation you can apply to the Valuation Office Agency to have the property taken out of the list altogether.  The Valuation Officer will judge if the property can be deleted completely.

However, please note that the new legislation also introduces anti-avoidance measures to stop properties from being deliberately damaged to avoid paying the empty rate.  If it is judged that the property has been damaged for the purposes of avoiding business rates, you may incur a penalty.

 

My property is only partly occupied.  How will this be affected?

At the moment the Council has the discretion to ask that a property be apportioned between the occupied and unoccupied parts for a limited period of time.  From the 1^st April, partly occupied properties will pay the full rate on the occupied part and receive a three month exemption on the unoccupied part (or six months for industrial).  After the exemption has expired the full rate will be due on the whole property once more.

 

Can I receive any rate relief on the empty property?

Rate reliefs such as the Small Business and Rural Rate Relief are designed to help certain types of businesses.  As such they are not available when a business is not in occupation.  Properties which are held by a charity and will be used for charitable purposes when reoccupied will be exempt from the empty rate from the 1^st April 2008.

 

Can I appeal against the change in my rates liability?

The changes in rates liability are from Government legislation and so you cannot appeal against them.  However, if you feel your rateable value is too high, you can appeal to the Valuation Office Agency to have them reduced.  The VOA can be contacted on (01244) 580300.

 

External links:

http://www.voa.gov.uk/

 

1. Any further questions?

If you have any more questions please contact: 

Business Rates Team
Fraud & Corporate Debt Section

Customer Services

Chester City Council
The Forum
Chester
CH1 2HS
Telephone  01244 402472
email: ndr@chester.gov.uk.