Exemptions with effect from 01 April 2008

The relevant non-domestic hereditaments described in this regulation are any hereditament-

(a) which, subject to regulation 5, has been unoccupied for a continuous period not exceeding three months;

(b) which is a qualifying industrial hereditament that, subject to regulation 5, has been unoccupied for a continuous period not exceeding six months;

(c) whose owner is prohibited by law from occupying it or allowing it to be occupied;

(d) which is kept vacant by reason of action taken by or on behalf of the Crown or any local or public authority with a view to prohibiting the occupation of the hereditament or to acquiring it;

(e) which is the subject of a building preservation notice within the meaning of the Planning (Listed Buildings and Conservation Areas) Act 1990(2) or is included in a list compiled under section 1 of that Act;

(f) which is included in the Schedule of monuments compiled under section 1 of the Ancient Monuments and Archaeological Areas Act 1979(3);

(g) whose rateable value is less than £2,200;

(h) whose owner is entitled to possession only in his capacity as the personal representative of a deceased person;

(i) where, in respect of the owner's estate, there subsists a bankruptcy order within the meaning of section 381(2) of the Insolvency Act 1986(4);

(j) whose owner is entitled to possession of the hereditament in his capacity as trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914(5) applies;

(k) whose owner is a company which is subject to a winding-up order made under the Insolvency Act 1986 or which is being wound up voluntarily under that Act;

(l) whose owner is a company in administration within the meaning of paragraph 1 of Schedule B1 to the Insolvency Act 1986 or is subject to an administration order made under the former administration provisions within the meaning of article 3 of the Enterprise Act 2002 (Commencement No. 4 and Transitional Provisions and Savings) Order 2003(6);

(m) whose owner is entitled to possession of the hereditament in his capacity as liquidator by virtue of an order made under section 112 or section 145 of the Insolvency Act 1986.

In these Regulations-

"qualifying industrial hereditament" means any hereditament other than a retail hereditament in relation to which all buildings comprised in the hereditament are-

(a) constructed or adapted for use in the course of a trade or business; and

(b) constructed or adapted for use for one or more of the following purposes, or one or more such purposes and one or more purposes ancillary thereto-

(i) the manufacture, repair or adaptation of goods or materials, or the subjection of goods or materials to any process;

(ii) storage (including the storage or handling of goods in the course of their distribution);

(iii) the working or processing of minerals; and

(iv) the generation of electricity;

"relevant non-domestic hereditament" means any non-domestic hereditament consisting of, or of part of, any building, together with any land ordinarily used or intended for use for the purposes of the building or part;

"retail hereditament" means any hereditament where any building or part of a building comprised in the hereditament is constructed or adapted for the purpose of the retail provision of-

(a) goods, or

(b) services, other than storage for distribution services, where the services are to be provided on or from the hereditament; and

"the Act" means the Local Government Finance Act 1988.

Amendments with effect from 1 April 2009

Section 45 of the Local Government Finance Act 1988 provides that owners of empty non-domestic properties are liable to pay non-domestic rates if certain conditions apply. One of those conditions is that the property must fall within a class prescribed in regulations made, in relation to England, by the Secretary of State.

Regulation 3 of the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 prescribes that class as consisting of all buildings or parts of buildings except those listed in regulation 4. The list in regulation 4 includes properties whose rateable value is less than £2,200 (regulation 4(g)). For the financial year beginning on 1st April 2009, regulation 2 of these Regulations alters the operation of regulation 4(g) so that it exempts properties whose rateable value is less than £15,000.

New from 1 April 2010

Section 45 of the Local Government Finance Act 1988 provides that owners of unoccupied nondomestic properties are liable to pay non-domestic rates if certain conditions apply. One of those conditions is that the property must fall within a class prescribed in regulations made, in relation to England, by the Secretary of State.

Regulation 3 of the Non-Domestic Rating (Unoccupied Property) (England) Regulations 2008 prescribes that class as consisting of all buildings or parts of buildings, together with land used or intended for use for the purposes of those buildings or parts of buildings, except those listed in regulation 4. The list in regulation 4 includes properties whose rateable value is less than £2,200 (regulation 4(g)). Regulation 2 of these Regulations amends regulation 4(g) so as to increase that amount to £2,600 for financial years beginning on and after 1st April 2011. However, for the financial year beginning on 1st April 2010 only, that amount is increased to £18,000.

Please contact us if you wish to apply for an exemption.

IMPORTANT NOTICE - BUSINESS RATES
CHANGES TO EXEMPTION FOR EMPTY PROPERTIES

From 1 April 2008 changes were made to how empty properties in the Rating List were charged business rates under the 'Rating (Empty Properties) Act 2007'. Empty commercial property was liable for full business rates after an initial rate-free period of three months, or six months for factories and warehouses. However, there were some exemptions including listed buildings and small properties with rateable values below a certain threshold as follows:

Financial Year Rateable Value Threshold

2008/09 £2,200

2009/10 £15,000

2010/11 £18,000

2011 to 2015 £2,600

(2015 -The date of the next revaluation)

Important note - Ratepayers who have been granted an exemption because the rateable value of their property is under £18,000 will no longer receive it after 1 April 2011. They will be issued with a bill for 100% of the charge.

Those ratepayers, who have already had a proportion of the new (industrial) six month, rate-free period at 1 April 2011, will continue to receive the balance of the relief, for up to six months in total i.e. if the exemption applies from 1 February 2011 it will cease on 31 July 2011. Full business rates will be payable from 1 August 2011.

Those ratepayers who have already had the three month rate-free period as at 31 March 2011 will no longer receive it from 1 April 2011. They will be issued with a bill for 100% of the charge.

Those ratepayers who have already had a proportion of the three month rate-free period at 1 April 2011 will continue to receive the balance of the relief, for up to three months in total i.e. if the exemption is applied as at 15 January 2011 it will cease on 14 April 2011. Full business rates will be payable from 15 April 2011.

The changes in rates liability arising from the reforms to empty property relief are not in themselves grounds for appeal. However, if you disagree with the rateable value that appears in the current rating list for your property, you may challenge it by making a 'proposal' against it to the Valuation Office Agency. You will find details of how the rateable value has been assessed on the Valuation Office Agency website www.voa.gov.uk along with the appropriate forms for appeal. If you would like additional information their local office is at:

34 Southway, Colchester, Essex, CO2 7BB

Tel: 03000 501 501

Email: ratingeast@voa.gsi.gov.uk

If you are experiencing difficulties in renting/leasing your premises and would like the Council's assistance, please contact the Council's Regeneration Team who may be able to assist with the marketing of the property

Further information can be obtained from the business rates team on 01255 686266 or by email business.rates@tendringdc.gov.uk