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Empty property rate relief - what you need to know
Why do you have to pay?
Under Section 45 of the Local Government Finance Act 1988, changed by the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008, the owner of an empty business property must pay 100% of the normal business rates.
How long before you pay?
- If your property is empty, you do not pay for the first 3 months.
- If it is an industrial property, you do not pay for the first 6 months.
What is a “qualifying industrial hereditament”?
This means a property that is not a shop and where all buildings are:
- Built or changed for use in a trade or business, and
- Built or changed for one or more of these purposes:
- Making, fixing, or changing goods or materials
- Storing goods (including handling goods for delivery)
- Working or processing materials
- Making electricity
A retail hereditament means a property where any building is built or changed for selling:
- Goods, or
- Services (except storage for delivery services)
How much is the empty rate?
After the free period ends, you pay 100% of the normal business rate unless your property is in one of the special categories listed in the law.
What properties do NOT pay empty rates?
You do not pay if your property:
- Is owned by a charity and will be used for charity work next
- Is owned by a community amateur sports club and will be used for the club next
- Has a rateable value under £2,900
- Cannot be used because the law says so
- Cannot be used because of action by the Crown or a local authority
- Is owned by someone acting as the representative of a person who has died
- Is on the list of monuments under the Ancient Monuments and Archaeological Areas Act 1979
- Is a listed building or has a building preservation notice
- Is involved in insolvency or debt cases, such as:
- Bankruptcy under the Insolvency Act 1986
- A deed of arrangement under the Deeds of Arrangement Act 1914
- A company being wound up under the Insolvency Act 1986
- A liquidator or administrator is in charge
After the free period
Once the 3 or 6 months are over, you pay 100% of the normal rate, unless:
- Your property qualifies for zero rate under the Rating (Empty Properties) Act 2007. This applies if:
- It is owned by a charity and will be used for charity work next
- It is owned by a community amateur sports club and will be used for the club next
Our decision
If you get empty rate relief, we will send you a new bill. If you do not get it, we will write to explain why.
We will check the property from time to time to make sure it is still empty. Tell us straight away if anything changes.
Empty rates avoidance
- Shops and offices get 3 months free
- Industrial and warehouse properties get 6 months free
From 1 April 2024, if your property is occupied for 13 weeks or more after a claim for empty rates, you can claim another free period when it becomes empty again.
To count as “occupied,” these 4 things must be true:
- Someone is really using the property
- They are the only occupier
- They get some benefit from using it
- They are not just using it for a very short time
If we think someone is using the property only to get another free period, we will inspect it.
Norwich City Council will not backdate requests for short occupation periods.
For full details, see:
