When a commercial property becomes vacant, owners are still responsible for paying business rates—a substantial overhead, particularly in London. However, under certain conditions, you may qualify for exemption from business rates due to unoccupancy, offering short-term relief or full exemption depending on the property’s status.
At Fraser Bond, we support landlords, developers, and property owners across the UK in reducing liability through strategic business rates relief, ensuring all exemptions are applied efficiently and lawfully.
Understanding Business Rates on Empty Properties
Under standard UK business rates regulations:
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All commercial properties are liable for business rates, even when unoccupied.
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However, temporary exemptions apply to most unoccupied buildings for a limited period after becoming vacant.
Standard Void Periods:
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3 months: Offices, shops, retail units
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6 months: Warehouses, industrial units
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Unlimited: Listed buildings, buildings with RV under £2,900, and properties occupied by charities (under qualifying conditions)
After the initial void period, full business rates liability resumes, unless further relief or exemption is granted.
When Can You Claim an Exemption from Business Rates Due to Unoccupancy?
1. During Standard Void Periods
You will receive an automatic exemption for 3 or 6 months, depending on property type, once it becomes unoccupied.
2. If the Property is Under Structural Repair
If the property is unfit for occupation due to major works, it may be removed from the rating list until works are completed. You must apply through the Valuation Office Agency (VOA).
3. If the Property Is a Listed Building
Listed properties are exempt from business rates for the full duration they remain unoccupied.
4. If the Property’s Rateable Value (RV) Is Below £2,900
Small properties may be permanently exempt while vacant, subject to verification from the local authority.
5. If the Property Has Been Let Short-Term
A six-week occupation resets the clock on the exemption period, allowing landlords to use interim lets strategically to restart void relief.
6. Discretionary Relief (Hardship or Council Relief)
Local authorities may grant discretionary exemptions in limited circumstances—such as if occupation is impossible due to external factors, legal restrictions, or public safety.
How Fraser Bond Helps You Minimise Business Rates Liability
Fraser Bond supports property owners by managing their empty unit strategy and securing every available exemption. Our services include:
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Assessing eligibility for full or partial exemptions
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Preparing and submitting proposals to the VOA
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Coordinating short-term lets or charitable occupation where beneficial
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Advising on redevelopment timing and holding costs
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Monitoring compliance with rating rules and deadlines
We serve landlords and developers across Central and Greater London—including Kensington, Camden, Hackney, Tower Hamlets, and Westminster.
Take Action – Don’t Overpay on Your Vacant Commercial Property
If you're holding an unoccupied commercial property and unsure about your business rates relief options, Fraser Bond can help you unlock exemptions, submit accurate documentation, and reduce costs during vacancy.
Visit FraserBond.com to request a business rates review or schedule a consultation with our asset advisory team.
