When a property first becomes empty, no rates are payable for three months. This is extended to six months in the case of certain industrial properties.
After this, empty rates are payable (the full liability) until the property is sold or reoccupied.
Liability for empty rates falls to the 'owner' who is described in the legislation as 'the person entitled to possession'. It is important to note that no new 'free' period is granted when an owner changes. Additionally no new 'free' period is granted if a property is reoccupied for less than 42 days.
Due to the economic climate, from 1 April 2009 to 31 March 2011, unoccupied properties with a rateable value of less than £15,000 for 2009/10 and £18,000 for 2010/11 were exempt from empty rates.
With effect from 1 April 2011 unoccupied properties with a rateable value of less than £2,600 only are exempt from empty rates.
