Whether you're a property owner or landlord, navigating business rates on empty properties can be frustrating. You're no longer earning income from the premises, yet the charges continue. This guide explores everything you need to know about business rates empty property rules, relief schemes, and practical steps to reduce unnecessary expenses.
Business rates are taxes on non-domestic properties. When your property becomes vacant, you might expect the bills to stop—but that’s not always the case. Generally, business rates for vacant properties are still payable after a short exemption period.
Typically, empty properties are exempt from business rates for up to:
After that, standard rates resume unless you qualify for further empty property relief.
Empty property relief can apply if the premises meet specific conditions. Relief might extend if your property is:
Local councils manage this relief, so it’s important to notify them when a property becomes empty.
It’s not illegal to reduce your liabilities if done transparently. Here are ways to avoid business rates on an empty property:
A building is classed as occupied if any part of it is used for Small Business purposes, even for storage. Therefore, simply placing furniture in the space may not qualify—but active use by a business might.
All three terms—vacant, unoccupied, and empty—are used interchangeably in this context. What matters is the lack of active business use and whether the council accepts it as such for relief.
You’ll need to:
If a portion of your premises is still in use, you may still need to pay full business rates. However, you can apply for a section 44A discretionary relief through your local authority if part of your property is unoccupied temporarily.
In Manchester, a property investor managed to reduce business rates on a vacant commercial unit by partnering with a local arts charity. The charity used the premises temporarily, and the owner claimed 80% relief. After six months, the exemption reset once it became empty again.
To avoid business rates on empty property, consider charity occupation, short-term leases, or changing the property's use classification. Make sure to notify your council and comply with legal requirements. This strategy can reduce liability without violating new business rates law.
No. Properties must meet certain criteria (e.g., industrial type or listed status). Local councils may also apply discretionary relief.
You need to inform your council with supporting evidence. A site inspection may follow.
Business rates on empty properties can be a financial burden, but relief schemes and proactive planning can help reduce this. Whether you're a small landlord or a large investor, understanding your options can save thousands annually.
Need help figuring out your eligibility or options? Speak with a local advisor or check your local council's website to start the process.
Don’t let your empty property become a financial drain. Apply for empty property relief today or explore lawful ways to minimise your liability. Subscribe to our updates for more guidance on business rates and commercial property management.
