Exemptions

Some types of property are exempt from business rates.

Some types of property are exempt from business rates. This means that no business rates are charged on them.

Exempt properties include:

  • agricultural land and buildings
  • fish farms
  • some churches and other places of worship
  • sewers
  • public parks
  • certain properties used for Disabled people
  • swinging moorings for boats.

and unoccupied properties which are:

  • listed buildings
  • properties with a rateable value less than £2,899 (from 1 April 2023)
  • kept empty due to action by a local authority or court
  • estate of a deceased person
  • land not being used
  • warehouses / industrial (exempt for up to six months only)
  • prohibited by law from being occupied
  • subject to bankruptcy, companies being wound up
  • owned by companies in administration
  • owned by charities or registered community amateur sports clubs, if it is intended that when next in use it will be for charitable purposes.

Empty-property rating

In general, you do not have to pay business rates for the first three months (six months for industrial or warehouse property) if your property is empty. After that, you pay the full amount.

We cannot extend the three-month period, but if you believe your property is still not fit to be used you should make an appeal to the Valuation Office Agency to have it taken off the rating list.

Empty relief will not be granted until our property inspector has confirmed the premises are empty. We will not consider retrospective applications unless you provide evidence which satisfies us that the property was empty.

Ways to contact us about business rates.

Partly occupied property relief

A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied.

Where a property is partly occupied and a clearly defined area is going to be left empty for a short period of time only, the local authority has the discretion in certain cases to grant relief in respect of the unoccupied part under Section 44A of the Local Government Finance Act 1988.

Partly occupied rate relief (Section 44A) is aimed at situations where there are practical difficulties in occupying/vacating part of an assessment.

Relief will not be granted retrospectively, and the property will be inspected by one of our officers to verify your claim. The relief will only be granted for a maximum of 3 months.

The empty area of the assessment must be unfurnished.

If we decide to grant the relief, we will request that the Valuation Office Agency (VOA) provides a certificate that apportions the rateable value between the occupied and unoccupied parts. The temporary apportioned value will enable us to calculate your relief entitlement but does not replace the value in the rating list. Once your relief has been calculated, a revised demand will be issued showing your entitlement.

The relief will end on the day that there is a change in the extent of the partial occupation or 31 March in the financial year in which relief is applied for or the property becomes completely occupied or unoccupied. You must notify us immediately if there is any change to the partial occupation.

If you wish to apply for this relief, please email businessrates@lbhf.gov.uk with floor plans of the unit highlighting the occupied and unoccupied parts.

Please note whilst your application is being processed your current rates remain due and payable.

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