Empty Business Rate Changes
Changes to the business rate liability
of empty and partly occupied properties which took effect on
Tuesday 1 April 2008.
The Government has
reformed empty property relief in order to provide a strong
incentive to bring empty property back into use. This will help to
increase the supply of premises to let, and so reduce business
rents and improve the competitiveness of the UK.
It will also bring
forward brownfield sites for re-development and so reduce the need
for new development on environmentally valuable greenfield
land.
The reforms to empty
property relief have consequential impacts for the business rate
liability of partly occupied properties that have been apportioned
(known as a Section 44a agreement). Waveney District Council is
required by central Government to implement these changes.
So what will
this mean for my business rate liability?
As of Tuesday 1
April 2008, most property that has been empty for more
than 3 months - or, in the case of industrial property, for more
than 6 months - will no longer receive relief from the business
rate.
After the
initial 3 or 6 month 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
From Tuesday 1 April 2008 the
business rate liability of empty property that is held by a charity
and appears likely to be next used for charitable purposes, or that
is held by a community amateur sports club and appears unlikely to
be next used for the purposes of the club, will be reduced from 10%
of the basic occupied rate to zero.
Qualifies for an
exemption from business rates under the National Non-Domestic Rate
(Unoccupied property) regulations
While the current permanent
exemption for industrial property will be reduced to 6 months, the
majority of the other exemptions have remained unchanged. This
includes listed buildings or properties subject to a preservation
notice, companies in liquidation or
administration and properties with a rateable value of less than
£2200.00
How will my
business rates liability be affected if my property is only partly
occupied?
If a property is only
partly occupied, the Council has the discretion to request that the
Valuation Office Agency apportioned the property's rateable value
between its occupied and unoccupied parts. This is known as a
Section 44a agreement.
At present, broadly
speaking, the empty property rate applies to the empty part of an
apportioned building.
From Tuesday 1 April
2008, as a consequence of the reforms to empty property relief, the
empty part will receive a complete exemption from business rates
for the first 3 months it is empty (or, if it is an industrial
property, for the first 6 months). 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
occupiers can benefit from any occupied business rate relief to
which they are eligible - such as small business rate relief - on
the whole of the property, not just the occupied part. However, if
the property would qualify for the new zero business rate or for an
exemption from business rates when empty, the apportionment will
continue to have effect and the owner will not be liable for
business rates on the empty part.
Can I appeal
against the change in my business rates liability?
The changes in business
rate 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 Valuation
Office Agency.
Your rights of appeal are
not affected by the reforms to empty property relief and you can
contact this authority or the Valuation Office Agency for further
information about the arrangements for making proposals.
Further information
regarding the changes to empty rate legislation is available on
the
Valuation Office
website.
You can contact
us:
E-Mail:
brates@waveney.gov.uk
Telephone: 01502
523280
Fax: 01502 523310
Post: Waveney District Council, Revenues and
Benefits, PO Box 96, Lowestoft, NR32
1HW