Business Rates discounts and relief

You may be able to get relief if your property is empty and unused. Empty business properties are exempted from business rates for the first three months that they are empty. Industrial and warehouse properties qualify for a further three months' exemption from business rates.

After three months, full business rates are normally payable. This is to provide a positive incentive to bring vacant shops, offices, factories and warehouses back into use.

Most property that has been empty for more than three months, or in the case of industrial property, for more than six months - will no longer receive relief from rates.

See also: Business rates relief: Exempt buildings (GOV.UK website)

Exemptions

After the initial three or six month rate free period expires, empty property will be liable for 100% of the basic occupied business rate unless:

1. It is held by a charity and appears likely to be next used for charitable purposes.
2. The rateable value is under the threshold value of £2,900. (Note, before the 1 April 2017, the threshold value was £2,600). Empty properties with a rateable value of less than £2,900 will be exempt.
3. It is held by a community amateur sports club and appears likely to be next used for the purpose of that club.
4. The owner is prohibited by law from occupying the property.
5. The owner is prohibited by action taken by the Crown, or any other local or public authority from occupying the premises.
6. The property is included in the schedule of monuments compiled under s.1 to the Ancient Monuments and Archaeological Areas Act 1979.
7. The owner is entitled to possession only in his capacity as the personal representative of a deceased person.
8. If the following insolvency or debit administration situation exists:
   • A bankruptcy order within parts 8 to 11 of the Insolvency Act 1986.
   • The owner is a trustee under a deed of arrangement to which the Deeds of Arrangement Act 1914 applies.
   • The owner is a company subject to a winding up order made under the Insolvency Act 1986.
   • The owner is entitled to possession of the property in his capacity as liquidator under s112 and / or s145 of the Insolvency Act 1986.

Can I have my property removed from the rating list?

If your property is in poor condition and cannot be economically repaired, the Valuation Office Agency may reduce the rateable value or even give a nil value, depending on the extent of the repair. To find out more, visit Repair and rateable value (GOV.UK).

Appeals

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 entry for your property, under the existing arrangements you may challenge it by contacting your local valuation office. Your rights of appeal are not affected by the reforms to empty property relief and you can contact this authority or the local valuation office for further information about the arrangements for making a challenge.

Section 44a Part Occupied Relief

Section 44a of the Local Government Finance Act 1988 enables Merton Council to grant Business Rates Relief on a business premises that is partly occupied, if this situation is for 'a short time only'.

This relief is purely aimed at situations, for example, where there are practical difficulties in occupying or vacating a property in one operation (perhaps because new accommodation to which the occupier is moving is not fully ready for occupation) and it is phased over a number of weeks or months, it would be reasonable to reduce the liability on that part of the property which is unoccupied.

Where part of the property is vacant and is capable of a separate assessment it will not be necessary for the Authority to exercise its discretion if the valuation officer is requested to split the existing assessment into the part that is occupied and the part that is vacant. 

How to apply for Section 44a Part Occupied Relief

To apply for this, you must submit a request in writing to us as soon as or before , the premises become part occupied.

The written request must include:

• dates that premises will only be part-occupied
• a plan of the property clearly marking the areas that are occupied and unoccupied
• a plan showing how it is intended to bring the unoccupied part back into use and within what timescales

Retrospective claims will not be considered

Please note, you are not entitled to withhold payment of rates pending the determination of any application made.

What happens after we receive your application

Once a request has been received by us, a visit will be arranged for our inspector to view the premises and confirm the 'short-term' period requested and other details in the submitted part-occupation plans.

Following the inspection, if entitlement to a 'short-term' period of Section 44a Part Occupied Relief is agreed, then a request will be submitted by us to the Valuation Office Agency for a Part-Occupied Certificate to be issued, for the agreed period of Rate relief.

As soon as we receive the Valuation Office certificate an amended Business Rates Bill will be sent showing the amount of relief granted and the period for which relief has been granted.

The relief will end automatically on expiry the agreed 'short-term' period, which will depend upon the circumstances of the case, or at the end of the financial year, if that is sooner.

If we do not grant relief, we will why we have refused to grant it.

There is no formal right of appeal as this relief is discretionary.

Related websites

Exempted buildings and empty buildings relief (GOV.UK)

Contact us

You can contact us by:

Email: Business.Rates@merton.gov.uk

Telephone: 020 8545 3919 between 9am and 1pm.

You can write to us at:

Business Rates
London Borough of Merton
PO Box No 559
Morden
SM4 5ZY

We are no longer able to attend to personal visitors at the Civic Centre.