Business Rates Exemptions: Which Properties Pay Nothing

Business Rates Exemptions

Some properties don't pay business rates at all. An exemption means the property is outside the business rates system, or no rates are charged while a condition applies. That's different from a relief, which reduces a bill that would otherwise be payable.

This guide covers every exemption category in England. For reliefs and discounts, see our full list of ways to reduce business rates.

Exemption vs relief

An exemption and a relief both lower what you pay, but they work differently.

Exemption - no business rates are charged, either because the property is outside the rating system or because a condition (such as being empty and listed) applies.
Relief - a discount on a bill that would otherwise be payable, such as Small Business Rate Relief, charity relief or Transitional Relief.

If your property doesn’t fall into one of the categories below, it will pay business rates, and the question becomes whether any reliefs apply and whether your rateable value is right.

Permanently exempt property

These properties are exempt from business rates whether occupied or not:

Agricultural land and buildings - farmland, market gardens, orchards and buildings used for agricultural operations. Farm buildings used for anything else, such as a farm shop, workshop, office or holiday let, are not covered.
Fish farms - land and buildings used for breeding or rearing fish or shellfish for food.
Places of public religious worship - including church halls, chapel halls and similar buildings used in connection with them.
Property used for the welfare of disabled people - such as day centres and workshops providing training or work for disabled people.
Public parks - parks provided by a local authority and available for free public use.
Certain infrastructure - including sewers, swinging moorings, lighthouses, buoys and beacons belonging to Trinity House, and certain road crossings over watercourses.

If one of these applies, the property should not have a business rates bill at all. If you receive one, contact your local billing authority.

Empty property exemptions

Most empty commercial properties get three months’ 100% relief (six for industrial and warehouse properties), then pay full business rates. Some empty properties are permanently exempt from business rates for as long as they remain unoccupied:

The property is a listed building - exempt for as long as it remains empty, regardless of how long that is.
The rateable value of the property is below £2,900 - the property remains exempt until it is reoccupied.
The property is owned by a charity and the next intended use is mainly for charitable purposes - the exemption continues until the property is brought back into charitable use.
The owner is entitled to possession only as the personal representative of a deceased person - the property remains exempt during the administration of the estate.
Occupation is prohibited by law - for example, where a closure order or planning restriction prevents the property from being used.
The owner is in insolvency - where the property is held by a liquidator, administrator or trustee in bankruptcy.

For how the three and six month periods work and how reoccupation resets them, see our guide to business rates on empty property.

Why exemptions can be lost

An exemption depends on how the property is used or on its condition, so it can end:

A farm building converted to a shop, office or holiday let leaves the agricultural exemption.
A listed building that is reoccupied, even partly, pays business rates in the normal way.
An empty property with a rateable value just below £2,900 may have been pushed above the threshold by the 2026 revaluation, removing its exemption.

If your property has lost an exemption because of a rateable value change, check whether the new value is right. If it is too high, a successful challenge could restore the exemption.

Scotland and Wales

Scotland and Wales run their own separate business rates and relief systems, with different thresholds and rules, so the figures on this page apply to England.

If no exemption applies

Most commercial properties aren’t exempt. For those, the bill depends on two things: the reliefs you qualify for and whether your rateable value is right. See our full list of ways to reduce business rates for reliefs, and what your rateable value represents for how the figure is set.

If your property isn’t exempt, the next question is whether it’s fairly assessed. A free eligibility check compares it against similar properties using publicly available HMRC Valuation Office data and shows straight away whether a challenge may be worthwhile.

Frequently asked questions

What is the difference between a business rates exemption and a relief?

An exemption means no business rates are charged on the property, either permanently or while a condition applies. A relief reduces a bill that would otherwise be payable, such as Small Business Rate Relief or charity relief. Most reliefs are applied by your local council; exemptions follow from what the property is or how it is used.

Is agricultural land exempt from business rates?

Yes. Agricultural land and buildings used for agricultural operations are exempt. Farm buildings used for other purposes, such as a farm shop, a converted office or a holiday let, are not covered and can be assessed for business rates.

Do churches pay business rates?

No. Places of public religious worship are exempt, as are church halls and similar buildings used in connection with them.

Are listed buildings exempt from business rates?

Only while they are empty. Listed buildings are permanently exempt from empty property rates for as long as they remain unoccupied, with no three or six month time limit. Once occupied, a listed building pays business rates in the normal way.

Is a property with a very low rateable value exempt?

If it is empty and its rateable value is below £2,900, it is exempt from empty property rates until it is reoccupied. An occupied property with a low rateable value isn't exempt, but Small Business Rate Relief may reduce the bill to nothing.

How do I claim a business rates exemption?

Contact your local billing authority. Some exemptions mean the property is never entered in the rating list; others, particularly empty property exemptions, need you to tell the council the property is empty and why the exemption applies.