Under Regulations which came into effect on 1^st April 2008, full rates are payable on unoccupied non-domestic property after an initial period of exemption.  Normally full rates will become payable once a property has been unoccupied for 3 months. This applies, for example, in the cases of retail or office properties.  For qualifying industrial properties, such as factories and warehouses, the exemption is for up to 6 months, after which full rates are payable.

This means that from the 1^st April 2008, the 50% reduction previously afforded to long term empty properties no longer applies.

Rates are not payable on unoccupied properties in circumstances where:-

·         Occupation is prohibited by law;

·         The property is kept vacant by reason of action taken on behalf of the Crown or any local or public authority;

·         The property is a Listed Building or subject of a Preservation Notice;

·         The property is listed as an Ancient Monument;

·         The rateable value is less than £2,200;

·         The owner is only entitled to possession in the capacity of personal representative of a deceased person;

·         The person entitled to occupy is a liquidator or a trustee in bankruptcy;

·         The owner is entitled to possession as trustee under a deed of arrangement;

·         The owner is a company which is subject to a winding up order;

·         The owner is a company in administration.

A further change to the Regulations means that empty property that is held by a charity or a registered Community Amateur Sports Club, will qualify for 100% rate relief, if it appears likely that the property will be next used for the purposes of that charity or club.