As you may already know, from 1 April 2008 the rules concerning empty property rates on vacant properties have changed for the worst.

“What has changed?”

• Qualifying Industrial hereditaments have lost their permanent exemption from rate liability whilst they remained vacant.
• From 1 April 2008 vacant factories and warehouses will now pay an empty property rate (which is the same rate liability as if it was occupied) after an initial six months period at nil liability has expired.
• Other vacant buildings (Offices and Shops) will now pay an empty property rate after an initial three months period at nil liability has expired 

“My property is currently vacant, when does my liability begin?”

• The starting point for calculating the initial period is the date when the property first becomes vacant. However, if your premises have already been vacant for over six months, then you’ll pay the full EPR from the 1st April 2008.

“Is my property exempt?”

Exempt properties comprise:-

• Small Properties under £2,200 RV
• Listed Buildings
• Properties occupied by companies in administration or liquidation.
• Vacant land with out any buildings.

(We expect different Local Authorities will employ a variety of interpretations on what constitutes vacant storage land)

“What steps can I take to minimise my empty rates?”

• Recycle the “six or three” month’s exemption periods by occupying, vacating and then reoccupying a property on a cyclical basis etc.  To qualify for the “six or three” month’s exemptions, all you need to do is occupy the property for six weeks (pay full-occupied rate charge) and then vacate it and claim the exemption period again! This is permitted under the current legislation but whether this remains so, depends if this “loop-hole” is pursued vigorously.
• If the property is vacant, as part of a redevelopment exercise, then appeals can be served in order to manage the dates that the property is taken out of the Rating List.
• If your property is only partially vacant, the empty rates can be managed by separately rating the vacant areas and dividing the property between occupied and vacant areas etc.

The examples listed above are only some of the options available for addressing this issue. This new rating law is highly complicated and the rules are as yet untried and untested. If you need advice, contact Roderick Bisset BSc MRICS IRRV for specialist advice and help on how to avoid paying any unnecessary business rates.