If you own or occupy a commercial property that has become vacant, you may be facing an unwelcome surprise: business rates bills that keep arriving even though no one is using the premises. Many property owners assume that an empty building means no rates liability. Unfortunately, that is rarely the case — but the good news is that there are several forms of relief available, and many owners are not claiming everything they are entitled to.

This guide explains exactly who qualifies for Empty Property Rates Relief in England and Wales, what the different exemptions are, and how the Check, Challenge and Appeal process can help you reduce your liability further.

What Are Empty Property Rates?

Non-Domestic Business Rates (often called business rates) are a tax on the occupation of commercial property. They are calculated based on the property's rateable value — an estimate of its annual rental value set by the Valuation Office Agency (VOA).

When a commercial property becomes vacant, the liability does not simply disappear. After an initial exemption period, the owner or occupier becomes responsible for paying full rates on the empty property. This catches many landlords and property owners off guard, particularly during periods of economic uncertainty or when a tenant vacates unexpectedly.

The Initial Empty Property Exemption

The first relief available is the initial empty property exemption. This applies automatically from the date a property becomes vacant:

• Most commercial properties (offices, shops, warehouses): exempt for 3 months
• Industrial premises (factories, workshops, storage facilities): exempt for 6 months

After this initial period, full rates apply — typically 100% of the rateable value. This is where many owners find themselves in difficulty, particularly if they are struggling to find a new tenant.

It is important to note that this exemption resets if the property is reoccupied for a continuous period of at least six weeks. Some owners have historically used short-term occupations to "reset the clock," though the VOA and local billing authorities are alert to arrangements that appear to be contrived solely for this purpose.

Permanent Exemptions: Who Qualifies?

Beyond the initial period, certain categories of property qualify for a permanent exemption from empty property rates. These are worth checking carefully, as they can eliminate your liability entirely.

Listed Buildings

If your property is a listed building — that is, it appears on the National Heritage List for England or the equivalent register in Wales — it is exempt from empty property rates for as long as it remains vacant and listed. This applies regardless of the grade of listing (Grade I, Grade II*, or Grade II).

Properties Below the Rateable Value Threshold

Properties with a rateable value below a certain threshold are exempt from empty property rates. The threshold has changed over time, so it is worth checking the current figure with your local billing authority or with a specialist consultant. If your property's rateable value is close to the threshold, it may also be worth exploring whether a successful rateable value challenge could bring it below the qualifying level.

Properties Owned by Charities

If the property is owned by a charity and it appears that when next in use it will be used for charitable purposes, it qualifies for a full exemption from empty property rates.

Properties Owned by Community Amateur Sports Clubs

Similarly, properties owned by registered Community Amateur Sports Clubs (CASCs) may qualify for relief, provided the property will be used for qualifying purposes when next occupied.

Properties Subject to Insolvency Proceedings

Where a property is in the hands of a liquidator, administrator, or trustee in bankruptcy, it may qualify for an exemption. The rules here are complex and have been subject to significant case law, so specialist advice is strongly recommended.

Discretionary Relief

In addition to the statutory exemptions above, local billing authorities have discretionary powers to grant relief in certain circumstances. This is not automatic and must be applied for, but it is worth exploring — particularly for properties in areas where the local authority has an interest in encouraging occupation or regeneration.

The Rateable Value Challenge: A Powerful but Underused Tool

Even where no specific exemption applies, many commercial property owners are paying more than they should because their property's rateable value is too high. The rateable value is the figure used to calculate your rates bill, and if it does not accurately reflect the property's rental value, you are overpaying.

The Check, Challenge and Appeal (CCA) process allows property owners and occupiers to formally dispute their rateable value with the Valuation Office Agency. A successful challenge can:

• Reduce your ongoing rates liability — permanently, for as long as the new rateable value applies
• Generate a backdated credit — if the challenge is successful, you may be entitled to a refund of overpaid rates going back to the date of the last revaluation
• Bring your rateable value below an exemption threshold — potentially eliminating your empty property rates liability entirely

The CCA process has three stages:

1. Check — you submit factual information about the property to the VOA and they review the assessment
2. Challenge — if you disagree with the outcome of the Check, you can submit a formal Challenge, setting out the grounds on which you believe the rateable value is incorrect
3. Appeal — if the Challenge is unsuccessful, you can appeal to the independent Valuation Tribunal for England (or the Valuation Tribunal for Wales)

Each stage has strict deadlines and procedural requirements. Missing a deadline or failing to submit the right evidence can significantly weaken your case. This is why working with an IRRV-qualified specialist is so important.

What Is the IRRV?

The Institute of Revenues Rating and Valuation (IRRV) is the professional body for rating and valuation practitioners in the UK. IRRV Technician Members have demonstrated a recognised level of competence in business rates and related disciplines. When choosing a consultant to handle your rates challenge, IRRV qualification is a strong indicator of professional expertise and ethical standards.

At Hexagon Commercial Rating Consultants, our team holds IRRV Technician membership. We work on a strictly no win, no fee basis — our fee is 20% of any savings or credits we achieve for you. If we do not save you money, you pay nothing.

How to Check Your Eligibility

If you own or occupy a vacant commercial property in England or Wales, here is a practical checklist to work through:

1. Confirm the vacancy date — the initial exemption period runs from the date the property became vacant, so accurate records matter
2. Check whether the property is listed — search the National Heritage List for England (Historic England) or Cadw (Wales)
3. Check the current rateable value — find it on the VOA's Check and Challenge service at gov.uk
4. Compare the rateable value to the current exemption threshold — if it is close, a challenge may be worthwhile
5. Review the property's use class — industrial premises qualify for a longer initial exemption than most other commercial properties
6. Consider whether the property is owned by a charity or CASC — if so, a full exemption may apply
7. Assess whether the rateable value is accurate — if you have evidence that comparable properties are assessed at a lower value, a challenge may succeed

Common Mistakes to Avoid

Assuming the initial exemption is automatic. In most cases it is, but you should notify your local billing authority when a property becomes vacant to ensure the exemption is applied from the correct date.

Missing the revaluation cycle. Rateable values are periodically reassessed. The most recent revaluation took effect from 1 April 2023. If you have not reviewed your rateable value since then, you may be paying based on an outdated or inaccurate assessment.

Waiting too long to challenge. There are time limits for submitting a Check or Challenge. Acting promptly after a revaluation — or after a significant change in the property market — gives you the best chance of a successful outcome.

Trying to navigate the process alone. The CCA process involves detailed procedural rules, strict deadlines, and technical valuation arguments. An experienced consultant can significantly improve your chances of success and ensure you claim every relief you are entitled to.

Get a Free Assessment

If you are paying business rates on a vacant commercial property and you are not sure whether you are claiming all available relief, Hexagon Commercial Rating Consultants can help. We offer a free, no-obligation assessment of your rates liability and will identify every avenue for reducing it.

Our service is entirely no win, no fee. We only charge if we save you money — and our fee is just 20% of any savings or credits we achieve on your behalf.

To find out more, call us on 01707 880873, email [email protected], or complete the enquiry form on our Empty Property Rates Relief page.