Empty Property Business Rates — How They Work
When a commercial property becomes empty, the owner or leaseholder usually gets an initial rates-free period. After that, they must pay the full standard business rate — currently at the standard multiplier of 54.6p per pound of rateable value.
Unlike occupied properties, empty properties do not qualify for most business rates reliefs (such as SBRR or RHL relief). This makes empty property rates a significant cost for landlords and property developers.
Empty Rates — Free Periods
| Property Type |
Rates-Free Period |
After Free Period |
| Office / Retail / Standard | 3 months | 100% full rate |
| Industrial / Warehouse | 6 months | 100% full rate |
| Listed building | Indefinite exemption | Exempt while empty |
| RV under £2,900 | Exempt | Exempt |
| Charity / Community | Up to 100% discretionary | Varies by council |
The 6-Week Reoccupation Rule
If a property is reoccupied for a continuous period of at least 6 weeks, a new empty rates-free period begins when it next becomes vacant. Some landlords have used short-term occupants to reset this clock, but HMRC and councils actively challenge artificial occupation arrangements.
Reducing Your Empty Rates Bill
- Find a tenant: Even a short-term occupier (over 6 weeks) resets the free period.
- Challenge the rateable value: If the RV is too high, a successful Check, Challenge, Appeal can reduce it.
- Apply for discretionary relief: Some councils grant relief for genuinely unlettable or distressed properties.
- Charitable occupation: If a charity uses the property (genuinely), rates relief may apply.
Frequently Asked Questions
What counts as an empty property for business rates?▼
A property is considered empty if it is unoccupied and not being used for business purposes. A property with some fixtures but no active business use may still be classed as empty. The key test is whether the property is being used for legitimate business purposes.
What is the 6-week reoccupation rule?▼
If a property becomes occupied for a continuous period of at least 6 weeks, a new empty rates-free period begins when it next becomes empty. Councils and HMRC are alert to artificial short-term occupations designed solely to reset the clock.
Do squatters affect empty property rates?▼
Unlawful occupation by squatters does not generally count as genuine occupation for rates purposes. The legal owner remains liable for empty property rates. If you are unable to gain access due to squatters, contact your council as some discretion may be available.
Are listed buildings exempt from empty property rates?▼
Yes. Listed buildings (Grade I, II* and II) are exempt from empty property business rates for as long as they remain empty. This is a full exemption with no time limit.
Can charities get empty property rates relief?▼
Charities are entitled to mandatory 80% relief on occupied properties. For empty charitable properties, councils may grant discretionary relief. Check with your council and the Charity Commission for guidance specific to your circumstances.
Can a local authority grant discretion on empty rates?▼
Yes. Councils have discretionary powers to reduce or waive empty property rates — for example, when a property is genuinely unlettable or the owner is in financial difficulty. Applications for discretionary relief are assessed case by case.
What are the main strategies to reduce empty property rates?▼
Common strategies include finding a temporary occupier (for at least 6 weeks), applying for a rating assessment reduction if the rateable value is too high, or short-term charitable occupation. Always take legal and tax advice before implementing any mitigation strategy.
What is the mezzanine floor rates mitigation?▼
Installing and immediately removing a mezzanine floor in an empty property has been used as a rates mitigation technique. However, HMRC and the VOA have challenged such schemes and legislation has been tightened. Do not attempt this without specialist advice.
Are there spring or summer seasonal empty rates exemptions?▼
There are no seasonal exemptions for empty property business rates. The initial rates-free period (3 or 6 months depending on property type) applies from the date the property first becomes empty, regardless of the time of year.
Are joint owners both liable for empty rates?▼
Where a property is jointly owned, the owners are jointly and severally liable for business rates. The council can pursue any one owner for the full amount. Joint owners should have clear contractual arrangements about who is responsible for paying rates.
What happens with empty properties in receivership or administration?▼
Insolvency practitioners acting in relation to a company's property have a limited exemption from empty rates in some circumstances. The rules are complex — receivers under fixed charges have different treatment to administrators. Always seek specialist insolvency and rates advice.
Can I challenge the rateable value of an empty property?▼
Yes. If you believe your property's rateable value is too high, you can make a Check, Challenge, Appeal (CCA) to the VOA. Reducing the rateable value will reduce your rates bill including during empty periods. This process can take time, but backdating is possible if successful.