Unoccupied and partly occupied property relief

Unoccupied property rating

Business rates are not payable in the first three months that a property is empty. This is extended to six months in the case of certain industrial properties.

After this period, rates are payable in full unless the property is a listed building or the Rateable Value is under 2,900.

Partly occupied property relief

Where a property is partly occupied, the ratepayer has two options in order for the non-domestic rate liability to be reduced.

These options are:

1. Where the unoccupied part is likely to remain empty for a long period of time (eg over one year), it may be possible for the ratepayer to apply to the Valuation Officer of the Valuation Office Agency (part of HM Revenue & Customs) for a split of the rating assessment, thereby creating two or more separate assessments.
2. If a property is temporarily only partly occupied, it is not always possible or necessary for the Valuation Officer to create two separate assessments in the Rating List. For example, where a company phases its removal from one property to another, it may not be appropriate to have the Rating List amended because the circumstances are not permanent. Where part of a property is unoccupied for only a short time the ratepayer may apply to the Council for relief under the provisions of Section 44A of the Local Government Finance Act 1988.

The Council has discretion under S44A of the Local Government Finance Act 1988, to request the Valuation Office to determine the rateable values of the occupied and unoccupied parts. The unoccupied part of the property will then benefit from a three month exemption from rates, or six months in the case of certain industrial properties. Following the expiry of this exemption period the occupied rates will then apply to the whole property.

Any ratepayer wishing to apply to the Council for relief under Section 44A of the Local Government Finance Act 1988 should apply to the council by emailing businessrates@north-herts.gov.uk.

If the property is not capable of occupation

If your property is not capable of occupation (for instance, if it needs or is undergoing major renovation works), you must approach the Valuation Office and request that the property be removed from the rating list altogether. In the meantime, whilst the property remains on the local rating list, the non-domestic rates are due and payable.