Empty Property Relief Periods and Exemptions
Under the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008, mandatory empty property relief applies from the first day of vacancy. Non-industrial hereditaments (offices, retail, leisure, restaurants, hotels): 3 months of zero rates; after 3 months, 100% of the full NNDR rate becomes payable. Industrial hereditaments (warehouses, factories, distribution units, storage): 6 months of zero rates; after 6 months, 100% payable. Exemptions: listed buildings (any grade) — exempt while listed; properties with a rateable value below the de minimis threshold (~£2,900 in England) — exempt while empty; genuine charity exemption — where last occupier was a charity (or CASC) and property likely to be used next for charitable purposes. The categorisation of a property as industrial or non-industrial is determined by the VOA based on the nature of the hereditament.
Re-Occupation Reset, Partly Occupied Relief and Rateable Value Challenge
Re-occupation reset: a genuine re-occupation for 6 or more continuous weeks (42 days) resets the empty property relief clock; the next vacancy attracts a fresh relief period. Re-occupation for fewer than 42 days does not reset the clock — the new vacancy is treated as a continuation. Courts and billing authorities scrutinise short re-occupation arrangements and will disregard sham occupations. Partly occupied relief (s.44A LGFA 1988): where part of a building is genuinely occupied and part is empty, the billing authority may agree to treat the empty part as a separate hereditament, allowing the empty part to benefit from the relief period; requires an active application to the billing authority. Rateable value challenge (CCA process): submit a Check to the VOA; then a Challenge with comparable rental evidence; appeal to the Valuation Tribunal if Challenge unsuccessful. Reductions backdated to 1 April 2023 (for the current 2023 rating list). Specialist rating surveyors (RICS-regulated) can assess RV and manage the CCA process.