Unoccupied Non-Domestic Properties
What is classed as an unoccupied property?
When no part of the property is occupied.
Who pays the rates on unoccupied properties?
Whoever is entitled to occupy the property pays the unoccupied property rates. This might be the leaseholder or the owner.
What rates are payable?
No rates are payable for the first three months or, in the case of a qualifying industrial property, for the first six months. If the property is still unoccupied after this time then 100% rates are payable. If a property is then occupied for a period of 13 weeks or more and then becomes unoccupied again, the property will become eligible for a further 3 or 6 month 100% unoccupied relief period.
From 1 April 2017 empty properties with a rateable value of no more than £2,899 are exempt from unoccupied property rates.
Certain classes of property are exempt from paying unoccupied property rates:
- The rateable value is no more than £2,899
- The property is listed
- The property is subject to action by the Crown or local authority
- Occupation of the property is prohibited by law e.g. under certain Health and Safety legislation
- Properties in respect of which the ratepayer is liable are subject to insolvency proceedings, including companies in Administration (following a change to the law effective from 1st April 2008)
- The person responsible for the Rates is acting as a personal representative of a deceased person
Partly occupied/unoccupied property (section 44a relief)
Where part of a property is unoccupied for a short time, the Council has the discretion to apply relief for the unoccupied part. The Council must ask the District Valuer to apportion the rateable value between the occupied and unoccupied parts, for the current financial year. For us to do this the occupied and unoccupied areas would have to be clearly defined and meet the following criteria:
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The total empty period in any rate year of a hereditament must be for 3 months (or 6 months in the case of industrial hereditaments) in order for it to be considered for s44a relief
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The empty period is a temporary change. Permanent changes should result in a change in the actual rateable value in the local rating list.
All guidance provided by the DCLG will be considered.
If you think this might apply to you please put your request for relief in writing to the Revenues Section. Please provide details of the date of vacation regarding the relevant part of the property, the reason for the vacation and plans of the property, clearly marking out the empty part. You must notify the Council to allow plenty of time for one of our inspectors to visit the property whilst the part in which an empty claim is being made is still empty. The Council will not award relief where the empty part has not been verified by an inspector (other evidence will not be accepted).
Keeping us informed
We regularly inspect unoccupied properties. However, you must still tell us when there is a change of circumstances, for instance if someone has occupied or you have sold the property.
For more information or to request a reduction for empty rates please email: businessrates@winchester.gov.uk