Empty Property Business Rates: Relief, Exemptions and What You Pay
Empty commercial properties are not automatically exempt from business rates. After an initial relief period — three months for most properties and six months for industrial premises — full business rates become payable, even though the property is generating no income. Understanding the rules around empty property relief, which properties are permanently exempt, and how the rating system treats vacant premises is essential for landlords, property owners, and businesses between tenancies.
What are empty property business rates?
Empty property business rates — sometimes called void rates — are the business rates liability that applies to unoccupied commercial properties. Unlike occupied properties, where the tenant or occupier is typically responsible for the rates bill, empty properties place the liability directly on the property owner or freeholder.
The rates payable on an empty property are calculated in exactly the same way as for an occupied one: rateable value multiplied by the relevant multiplier. There is no reduced multiplier for empty properties. After the initial relief period expires, the full standard or small business multiplier applies.
How long before empty property rates become payable?
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 this initial period, full business rates are payable.
After the relief period ends, the full rates bill becomes payable as though the property were occupied.
Resetting the empty rate relief period
From 1 April 2024, a property must be continually occupied for a minimum of 13 weeks to benefit from 100% empty rate relief. This replaced the previous six-week reset period.
This is an important practical point. A brief or token occupation of less than 13 continuous weeks will not restart the relief clock. The occupation must be genuine, continuous and for at least the full 13-week period before a fresh three or six month exemption applies.
A change of ownership or a new tenancy does not automatically reset the relief period. A further empty relief period does not automatically apply due to a change in ownership, leaseholder or tenant. The 13-week occupation requirement applies regardless of who holds the property.
Which empty properties are permanently exempt?
Some empty properties are permanently exempt from business rates for as long as they remain unoccupied. 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. However, permanent exemptions apply in the following circumstances:
The rateable value of the property is below £2,900 — the property remains exempt until it is reoccupied.
The property is a listed building — exempt for as long as it remains empty, regardless of how long that is.
The owner is prohibited by law from occupying the property — where a legal restriction, enforcement notice or prohibition order prevents occupation.
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 property is owned by a Community Amateur Sports Club and the next use will be mainly as a sports club.
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.
Insolvency situations — where the ratepayer is subject to a bankruptcy order, or the company is in administration, liquidation or subject to a winding-up order.
The property is a scheduled ancient monument.
In all other cases, full empty rates become payable after the initial three or six month period.
Part-occupation relief
Where a property is only partly occupied for a short period — for example, during a phased move into or out of premises — the local billing authority has discretion to award relief on the unoccupied portion.
If granted, the rateable value is apportioned and empty property rates apply only to the unoccupied element. Full rates continue to apply to the occupied portion.
This relief is entirely at the council's discretion and is designed for genuine transitional situations. Contact your local billing authority to discuss eligibility and the application process.
Empty properties and the 2026 revaluation
The 2026 revaluation updated rateable values across England from 1 April 2026. For owners of empty properties, this has two significant implications.
First, where a rateable value increased as a result of the revaluation, the empty rates liability will have increased proportionally — since void rates are calculated on the same rateable value as occupied rates, any upward revision in value flows directly through to an increased empty rates bill.
Second, properties whose rateable values previously fell below the £2,900 permanent exemption threshold may have been pushed above it by the revaluation, removing their exemption. If this applies to a property you own, it is worth checking the updated rateable value in the HMRC Valuation Office's rating list.
For a full breakdown of what changed in the 2026 revaluation, see our Business Rates Revaluation 2026 guide.
Can you challenge the rateable value of an empty property?
Yes. An empty property can be the subject of a rateable value challenge through the HMRC Valuation Office's Check, Challenge, Appeal process, in exactly the same way as an occupied one.
If the rateable value of your empty property is too high relative to comparable properties, a successful challenge will reduce the ongoing empty rates liability and may produce a backdated refund covering the period from 1 April 2026 to the date the reduction takes effect.
This is particularly worth considering where:
The property has been empty for a sustained period and the void rates bill is a material ongoing cost.
The rateable value increased significantly in the 2026 revaluation and comparable properties are assessed at lower levels.
Structural changes or access issues have affected the property's rental value since the April 2024 valuation date.
A [free eligibility check](https://www.businessrateseligibility.co.uk/rateable-value-check) provides an immediate indication of whether your property's rateable value appears to be in line with comparable properties.
For a full guide to the appeal process, see our Business Rates Appeal guide
Managing empty property business rates
For property owners and landlords with vacant premises, the empty rates liability is often the most significant ongoing cost of a void period. The main practical options are:
Confirm the relief period — ensure your local billing authority has been notified of the vacancy and the relief period is correctly applied from the date the property became unoccupied.
Check for permanent exemptions — confirm whether any of the permanent exemption categories apply to your property before assuming full rates will be payable after the initial relief period.
Review the rateable value — if the rateable value looks too high relative to comparable empty and occupied properties in the area, a challenge may reduce the ongoing liability.
Consider part-occupation relief — if a portion of the property is in use, even temporarily, contact the billing authority to discuss whether a part-occupation relief application is appropriate.
Seek specialist advice — for higher-value properties where the void rates bill is substantial, professional rating advice can identify options for managing the liability that are not immediately obvious from the standard rules.