Warning – Change to Empty Property Rates on Industrial Buildings - January 08
Further to our earlier alert on empty property rates new government guidance has been announced stating that Landlords will now face full business rates bills for industrial premises that have been empty for six months and retail/office premises which have been empty for three months on 1st April 2008.
It was previously understood that the six month’s exemption on industrial premises and three month’s exemption on retail/office premises would start to run from 1st April 2008. But now as a result of new government guidance owner/occupiers of empty premises will be liable to pay empty property rates from 1st April this year. Therefore an industrial building that has been empty from 1st November 2007 or retail/office premises that have been empty from 1st January 2008 will be liable to pay empty rates from 1st April 2008 onwards.
Who is Liable for the Empty Rates?
The person or company entitled to occupy the property is liable to pay any empty rates. If the property is leased this will be the leaseholder, otherwise the owner will be liable for empty rates.
Buildings covered by the legislation include;
• Industrial buildings (Defined as a building constructed or adapted to be used for the manufacture or repair of goods or material, or for the storage and handling of goods during distribution, for example workshops, warehouses, factories etc)
• Listed buildings
• Retail premises (For example, vacant offices, shops, leisure and motor trade facilities)
When is a Property Empty?
A property is empty if it is not being used by anyone for any purpose, including use as storage. A property is also classed as empty if it contains only plant, machinery or equipment that was either used in the property by the last occupier, or is intended to be used in the property by the next occupier. However, if stock or goods are left in the property, this is a good indicator that it will be treated as occupied.
Options available to help reduce your Empty Property Rates;
1. Lodge a rates appeal against the rateable value of the property.
2. Sell the property, it may be a more viable to sell a property that has been empty for several years and in a dilapidated state as the property will soon be liable for full rates.
3. Improve/refurbish the premises to make the prospects more attractive for sale and letting.
Philip Parkinson, Partner, Commercial Property |
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