Business Rates and Unoccupied Property

Government in the 2007 budget and came into effect from 1 April, 2008.

An unoccupied property – which is not a domestic dwelling – does attract business rates, but much depends on its status at the time.

Although whatever status the building is in, experts agree that it is always best to ensure that it is covered by unoccupied property insurance. Given the inherent vulnerability of such properties (attacks from natural and man-made disasters, and vandals and squatters), a comprehensive unoccupied property insurance is vital. And for domestic homeowners as well, they should not forget the advantages of a well conceived unoccupied house insurance policy.

But back to business rates which from the date of the new legislation, went from a discounted level of 50% of the occupied rate, to 100% of that rate. What’s more, those industrial properties which were exempt from empty property rates, now have to pay the full rate.

There are important exemptions to this rule though; the main one being that empty properties owned by charities, or by amateur sports clubs that operate at a community level, are exempt. There are further key exemptions which need to be considered. First up are those properties which have been empty for a period (continuous) not exceeding three months. This is except for industrial properties where the period of exemption is six months.

Next is an empty property which the owner is not allowed to occupy it