Business rates reliefs and exemptions

Unoccupied and empty non domestic properties will attract a business rates charge. Yet, there are some instances where business rates are not payable.

Business rates will not be payable for the first three months that a property becomes empty. 

From the 1 April 2024 a property will need to be occupied for 13 weeks, rather than 6 weeks, before a ratepayer can qualify for a further period of empty rates.

For empty industrial premises (such as factories or workshops), business rates are not payable for six months, after which a 100% charge is due.

Unoccupied properties exempt from paying business rates

Some unoccupied properties are exempt from paying business rates. These properties include where:

• the rateable value is less than £2,900
• the property is subject to a building preservation notice (listed buildings)
• the property is owned by a charity and appears likely to be next used for charitable purposes
• the owner is subject to a bankruptcy or winding-up order
• the owner is in possession only in their capacity as liquidator
• the owner is only in possession as an administrator or personal representative of the deceased estate
• the owner is prohibited by law from occupying the property

Apply for business rates relief

To apply for the empty property relief, complete details of the business and provide your business rates reference number which is available on the top of your bill, then select 'Empty property relief' from the drop down box.   

Apply for business rates relief

For more information about empty property relief see:

Empty property relief on Gov.uk

Partly occupied properties

Even if a property is partly unoccupied, the full business rates charge remains due. But, if you only occupy part of the property on a temporary basis, you could claim a reduction on the empty part.

The reduction will depend on how long the part of the property is likely to remain unoccupied.

Partly unoccupied for a short period of time

If part of your business property is empty, and will remain so for a short time only, you could apply for a reduction based on hardship. An example of this is when a company phases its move from one property to another. 

To qualify for the reduction we will need to know how much of the property is empty. We will report this to the Valuation Office Agency (VOA) to provide a certificate of occupation. This will outline the proportion of the property which you will occupy.

Apply for short-term relief

You must tell us as soon as the property becomes partly occupied. To do so email our business rates team, and in your application include:

• the reason why the property is partly occupied.
• the date on which it became partly occupied.
• an estimate of when you expect it to become fully occupied or completely unoccupied.
• a plan of the property to show the occupied and unoccupied parts. This does not need to be a professional plan. The plan should be accurate enough to understand the layout of the property.

If you qualify for the relief, we will apply to the VOA for the necessary certificate. The split between the occupied and unoccupied parts of the property must be clearly defined. If not, the VOA may need to visit the property to take measurements.

For our policy on part occupied relief see:

Rate relief on partly occupied properties

Split assessments

The VOA may agree to split the assessment. If so, they will value the parts of the property based on the rent each would attract if let separately. This is an estimate by the Valuation Office Agency of how much it would cost to rent a property for a year on 1 April 2021.

The total RV for the two new assessments may not be the same as the single RV of the old assessment. The rates payable may be more, or less, for the two assessments than they were for the single assessment.

You will need to contact the VOA to change the rating assessment on your property. 

For more information see:

If your business or premises change on Gov.uk