Business rates—empty property

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Produced in partnership with Alan Murdie of Nucleus Legal Advice Centre

Practice notes

Business rates—empty property

Copyright © 2025 LexisNexis

Produced in partnership with Alan Murdie of Nucleus Legal Advice Centre

Practice notes

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Business rates are generally payable by the relevant ‘owner’ in relation to unoccupied non-domestic property, but there are certain exemptions. This Practice Note covers liability for business rates for unoccupied property, including common exemptions (often known as ‘empty rates relief’) with an emphasis on the position in England. Occupation and possession are key, whether actual or deemed through ownership.

Empty properties: rates

Business rates are generally payable by the relevant ‘owner’ in relation to unoccupied non-domestic property, but there are certain exemptions. 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 for a short time, the local authority has discretion in certain cases to award relief in respect of the unoccupied part.

The ‘owner’ of a hereditament or land for ratings purposes (and therefore the person liable for business rates) is the person entitled to possession of it. See section 45 of the Local Government Finance Act 1988 (LGFA 1988). See Practice Note: Liability for business rates—Owners.

LGFA

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Jurisdiction(s):

United Kingdom

Key definition:

ACT definition

What does ACT mean?

Association of Corporate Treasurers.

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