What is Empty Property Relief (Business Rates)?

Full Definition

Empty Property Relief is a business rates exemption available to owners of most vacant non-domestic properties for a limited period after they become empty -- normally three months for most commercial properties such as shops and offices, or six months for industrial premises such as warehouses and factories -- after which full business rates generally become payable again even though the property remains unoccupied, unless a further specific exemption applies. Certain categories of property can qualify for a longer or indefinite exemption regardless of how long they have been empty, including properties with a low rateable value below a set threshold, listed buildings, and properties where the owner is prohibited by law from occupying them (for example, due to a compulsory purchase order or certain planning restrictions). Because the standard relief period is short, some landlords and property owners have historically used short-term "reoccupation" strategies -- briefly reletting or reoccupying a property for a short period to reset the empty relief clock -- though local authorities and the courts have become increasingly alert to and restrictive of arrangements seen as designed purely to avoid rates rather than reflecting genuine occupation, so this route carries real legal and reputational risk and should not be relied upon without proper advice. Empty Property Relief must usually be applied for through the relevant local authority rather than being granted automatically, and eligibility rules can vary slightly between England, Scotland, Wales and Northern Ireland.

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