Changes to empty property relief from 1 April 2010
In the Chancellor’s 2009 Pre-Budget Report the Government
announced that, from 1 April 2010 to 31 March 2011, no rates will
have to be paid on an empty business property with a rateable value
of up to £18,000. The previous limit for the year ending 31 March
2010 was up to £15,000.
However, from 1 April 2011 the rateable threshold below which
empty properties are exempt from rates will revert to its normal
level. This was previously up to £2,200 to 31 March 2009, but will
be uprated in line with the general movement of property values at
revaluation to under £2,600.
Government reforms to empty property relief - April 2008
In 2008 the Government reformed empty property relief in order
to provide a strong incentive to bring empty property back into
use.
From 1 April 2008 most property that has been empty for
more than three months (more than six months in the case of
industrial property) will no longer receive relief from rates.
After the initial three or six months rate free period expires,
empty property will be liable for 100% of the basic occupied
business rate unless it:
- qualifies for the new zero rate provided by the Rating (Empty
Properties) Act 2007; or
- qualifies for an exemption from rates under the NNDR
(Unoccupied Property) Regulations.
Note - for the year ending 31 March 2010 the
Government increased the threshold below which empty business
properties are exempt from rates to £15,000. From 1 April 2010 this
will increase to £18,000. From 1 April 2011 the threshold is
reverting to its normal level which will be under £2,600
(previously £2,200).
Charities and community amateur sports clubs (CASCs) which own
empty property will not be liable to rates for that property, as
long as it appears it will be next be used for charitable purposes
or the purposes of the club.
Listed buildings and those with a statutory protection continue
to be permanently exempt. Companies in administration also benefit
from permanent exemption whilst their properties remain empty.
Relevant extracts from the regulations can be viewed by
following the link below:
More
information about empty property rates (new
window) is available on the Business
Link website.
Can I get my property taken out of the rating list?
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 Agency (VOA) may judge that it
should be taken out of the rating list altogether.
Issues relating to valuation matters should be taken up directly
with the VOA. Follow this link for
contact details and directions (new window)
to their Ipswich office. Their address and telephone number are
given below:
Valuation Office Agency,
St Clare House,
Greyfriars,
Ipswich IP1 1LR.
Telephone: 03000 506030.
Fax: 03000 506090.
How will my rates liability be affected if my property is only
partly occupied?
If a property is only partly occupied, the Council as the
billing authority has discretion to request that the VOA apportions
the property’s rateable value between the occupied and empty
parts.
From 1 April 2008, as a consequence of the reforms to empty
property relief, the empty part will receive a complete exemption
from rates for the first three months it is empty (for the first
six months if it is an industrial property).
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 the
occupiers can benefit from any occupied business rate relief’s to
which they are eligible - such as
Small Business Rate Relief (SBRR) - on the
whole property, not just the occupied part.
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 rates liability arising from the reforms to empty
property relief are not in themselves grounds for appeal. However,
if you disagree with the rateable value that appears in the current
rating list entry for your property, under the existing
arrangements you may challenge it by making a proposal against it
to the VOA. Your rights of appeal are not affected by these reforms
to empty property relief. Follow this link for
information about making an appeal.
If you have any questions or would like further information
please contact the Business Rates team on 01394
444544 or email
businessrates@suffolkcoastal.gov.uk