Thackray Williams

The new regime allows for 100% relief on empty properties for the first 6 months for industrial buildings and for 3 months for all other commercial properties. Thereafter, 100% rates will be payable. This applies equally where a building is partly empty, so that rates will be fully payable on the whole of the building.

However, a new rate free period can be claimed after a property is let for at least 6 weeks but then later becomes empty once again.

The only exceptions to the new rule are empty listed buildings and those buildings which are not rateable because they are incapable of occupation, which will both continue to receive total exemption.

If your property has already had the benefit of a rate free period under the current regime then full rates will apply from 1 April 2008.

Whilst it is not possible to avoid the changes to ratings relief it is important to ensure that all commercial properties are correctly valued to ensure the right amount of rates are paid.

For more information about commercial property transactions, email: vikki.herbert@thackraywilliams.com.