Transitional rates relief and unoccupied properties
All rateable values are reassessed at a general revaluation. Revaluations will take place every 3 years. On 1 April 2023, the new rating list came into effect. Your bill will be based on the rateable value assigned to the property on this date.
Property values normally change a good deal between each revaluation. Transitional relief arrangements help to phase-in the effects of these changes on ratepayers’ bills. Where there is a decrease in rateable value, ratepayers will see the reduction in their bill straight away.
We will automatically include transitional relief when we calculate your bill. It is shown on the bill as ‘Transitional Adjustment’.
Transitional relief limits the percentage your business rates bill can be increased each year. This is following revaluation. The transitional relief will apply each year. This is until the full amount is due, and your bill reaches what your full bill should be.
The full bill is calculated by multiplying the rateable value by the multiplier.
More information on transitional rate relief is available on the GOV.UK website.
Unoccupied properties
Non-domestic properties are exempt from paying business rates for the first 3 months. This is the case if they are empty and unoccupied. After this time, most businesses must pay full business rates.
Some properties can get extended empty property relief -
- industrial premises, such as warehouses, are exempt for a further 3 months
- listed buildings are exempt until they become occupied again
- buildings with a rateable value under £2,900 are exempt until they become occupied again
- properties owned by charities are exempt if the property's next use is likely to be wholly or mainly for charitable purposes
- community amateur sports club buildings are exempt if their next use is likely to be wholly or mainly for a sport club
After the exemption period ends, business rates will be charged at 100%.
A change in ownership or tenancy will not affect the right to an exemption. For example, if someone purchases or leases a property that has already been unoccupied for over 3 months, a new period of exemption cannot be applied.