For the first three months that a business property is empty, in general, there are no business rates payable. In the case of industrial or warehouse property this period is extended to six months.
After these periods the property is usually subject to 100% occupied rate, but there are a number of exemptions to this to include where a property:
• Is held by a charity and appears likely to be next used for charitable purposes
• Is held by a community amateur sports club and appears to be next used for the purpose of the club
• The rateable value of the property is less than £2,600 (with effect from 1 April 2010 to 1 April 2017)
• The rateable value of the property is less than £2,900 (with effect from 1 April 2017)
• The owner is prohibited by law from occupying the property
• The owner is prohibited by action taken by the crown, or any other local or public authority from occupying the premises
• If the property is the subject of a Building Preservation Notice within the meaning of the Planning (Listed Buildings and Conservation Areas) Act 1990, or is in a list under Section 1 of that Act.
• The property is included in the schedule of monuments compiled under s.1 to the ancient monuments and archaeological areas act 1979
• The owner is entitled to possession only in his capacity as the personal representative of a deceased person
If the following insolvency or debt administration exists:
• A bankruptcy order within parts 8 to 11 of the insolvency act 1986
• The owner is a trustee under a deed of arrangement to which the deeds of arrangement act 1914 applies
• The owner is a company subject to a winding up order made under the insolvency act 1986
• The owner is entitled to possession of the property in his capacity as liquidator or administrator under s112 or s145 of the insolvency act 1986