Background
Empty business properties with a current rateable value of between £2600 and £17999 have been fully exempt from business rates on a temporary basis since April 2009. However, the Government has now removed this exemption with effect from the 1st April 2011.
How will this change affect my rates liability?
As of 1st April 2011, most properties with a rateable value between £2600 and £17999 that have been empty for more than three months (or, for industrial property, six months) will no longer receive relief from rates.
Once a property has been empty for three (or six) months it will therefore be liable for 100% of the basic occupied business rate, unless it qualifies for a full exemption, e.g.:
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listed buildings
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occupation is prohibited by law
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the rateable value is less than £2600
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it is subject to a preservation notice
Can I get my property removed from rates altogether?
If, for example, your property is in such a poor condition that it cannot be economically repaired, your valuation officer (see below) may judge that it should be taken out of the rating list altogether.
How will my rates liability be affected if my property is only partly occupied?
If a property is only partly occupied, the Council has discretion to request that the valuation officer (see below) apportions the property’s rateable value between its occupied and unoccupied parts.
At present, generally, the empty property rate applies to the empty part of an apportioned building and the occupied business rate applies to the occupied part. The empty part will receive a complete exemption from rates for the first 3 months it is empty (or, for industrial property, the first 6 months). After the initial rate-free period expires, in most cases the apportionment will cease to have effect and the occupied business rate will apply to the whole property. This will ensure that occupiers can benefit from any occupied reliefs to which they are eligible, e.g. small business rate relief, on the whole of the 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 owner will not be liable for rates on the empty part.
Can I appeal against the change in my rates liability?
The changes in rate liability arising from this amendment to the law are not in themselves grounds for appeal. However, if you disagree with the rateable value that appears in the rating list for your property, you may challenge it by making a “proposal” against it to your local valuation office (see below). You can contact the Council or the local valuation office for further information about the arrangements for making proposals.
Contact details for the local Valuation Office:
Valuation Office Agency
Regent Court
14-17 George Road
Edgbaston
Birmingham
B15 1NU
Tel: 0300 050 1501
Email: westmidlandsgroup.vo@voa.gsi.gov.uk
