Changes to business rates as of 1st April 2008
Empty Rates
From the 1st April Empty Rates Relief has been abolished. If you are a premises owner looking to lease or sell your property then please contact a member of the Invest in Gloucestershire Team. Please contact info@investinglos.co.uk or use the contact us option.
Below is a list of options to owners of vacant property within Gloucestershire:
Appeal against the rating assessment.
The only sure way of avoiding the tax is to have the assessment, on which it is charged, deleted from the rating list. Each individual case with be assessed separately.
On empty Industrial premises where there has been no challenge in assessments, because there has been no liability to date, might result in a reduction in rates, and so should be considered.
An appeal may well reduce the ongoing empty rates charge, whereas in the case of physically redundant properties perhaps pending the demolition and or redevelopment, the charge could be removed entirely if proof can be given that there is no market for the redundant building, or it is in such a poor state that it is unable to command an assessment.
Pass on the rates liability
The idea behind the removal of rates relief was to encourage disused premises back onto the market. If premises are offered on a short term lease, the rates can be charged to the occupier. On subsequent vacation the owner will benefit from a three month (non industrial) or six month (industrial) rates holiday. This scenario is of particular use with properties that have been empty for a long period.
Charitable Occupiers
Any bona fide charity can benefit up to 100% relief on the occupation of a property. The occupation is likely to be physical occupation, rather than a legal undertaking, particularly if there is an exploitation of sham occupations.
Unfinished Buildings
The criteria that determine when a building is capable of assessment are wide and varied. A result being an incomplete speculative development in a depressed area may not satisfy the rateability criteria, whereas a similar scheme in an area of high demand would be liable.
If it is reasonable to assume that a building is capable of being put into a lettable condition within three months, then an instrument known as a completion notice (issued by a local authority) can fix a date from which liability will commence.
| Changes in Empty Rates Relief Regulations |
|---|
| Category of empty Property |
From 1st April 2008 |
|---|
| Commercial property |
First three months exempt followed by full occupied rate |
|---|
| Industrial property |
First Six months exempt followed by full occupied rate |
|---|
| Listed commercial property |
Exempt |
|---|
| Part occupied |
Proportional relief at discretion of Local Authority but restricted to exempt period of qualifying property |
|---|
| Registered Charity |
Exempt |
|---|
| Sports club registered as Community Amateur Sports Club (CASCs) |
Exempt |
|---|
| Properties with assessment less than the Rateable value £2,200 |
Exempt |
|---|
| Company in insolvent and subject to either bankruptcy or winding – up order |
Exempt |
|---|
| Company is in Administrative Receivership |
Exempt |
|---|
Constructive Vandalism
A building can be demolished, subject to planning permission. Constructive Vandalism, such as stripping out services and utilities has received much attention. Please be aware that each case however is viewed separately and there is NO guarantee with this result in the building being from exemption. It should only be used if the building will not be used at some future stage – ie, the building is being demolished.
Legal Restrictions
Occupational constrains placed on sites, such as those contaminated with asbestos which legally restricts their use, could provide an opportunity for exemption rates.
Planning Restrictions
Any building which is listed under planning legislation will continue to be exempt from rates whilst empty.
Administration
Empty properties subject to an Administration Order will benefit from 100% relief in the same way as properties owned by companies in liquidation.