Owning a vacant commercial property in London or anywhere across the UK can be financially burdensome—particularly due to ongoing business rates liability, even when the space generates no rental income. However, property owners may be eligible for business rates relief under certain conditions.
Understanding when and how to claim a discount on business rates for vacant commercial property can help reduce holding costs and protect long-term investment value. At Fraser Bond, we advise commercial landlords, asset managers, and developers on property tax optimisation, compliance, and vacant unit strategy.
In England and Wales, most commercial properties become liable for full business rates after 3 months of vacancy. However, different property types have different rate-free periods:
Retail and offices: 100% relief for 3 months
Industrial properties (e.g. warehouses): 100% relief for 6 months
Listed buildings: Exempt until re-occupied
Properties with rateable value under £2,900: May qualify for ongoing relief
After the rate-free period ends, full business rates become payable—unless the owner qualifies for additional reliefs or exemptions.
There are specific scenarios in which landlords and property owners can secure a discount or exemption on vacant commercial property business rates:
As noted, standard 3 or 6-month exemption periods apply based on property type.
If the property is unfit for occupation due to repair or refurbishment, it may be removed from the rating list temporarily. This requires Valuation Office Agency (VOA) approval and evidence.
Letting to a charity for at least 6 weeks can reset the exemption period.
Short-term occupiers may also restart the rate-free period for the owner upon their exit.
If the property is statutorily listed, it is exempt from business rates while unoccupied.
Local councils can apply discretionary relief in cases of financial hardship or public benefit—though these are rarely awarded and require strong justification.
Managing an empty commercial property in London presents both risks and opportunities. At Fraser Bond, we provide landlords and asset managers with:
Guidance on minimising business rate exposure
Strategic short-term letting and licence solutions
Void management, security, and compliance
Coordination with valuation surveyors and local authorities
We work with clients holding vacant offices, shops, mixed-use units, and redevelopment sites across London to implement tax-efficient holding strategies while preparing the asset for sale or re-letting.
If you own or manage a vacant commercial property and need help reducing costs, exploring business rates relief options, or navigating compliance, our team is here to assist.
Contact us via FraserBond.com for a vacant property consultation or to discuss your eligibility for business rates discounts and exemptions.
