Non-Domestic Vacant Rating

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Guide

Since 1 April 2004, the rating of vacant non-domestic property has been in place to encourage properties to be brought back into use. There are no vacant rates payable for a property with a Net Annual Value (NAV) of less than £2,000. For properties with a NAV of £2,000 or more, rates are not payable for three months from either the date a non-domestic property becomes empty or, in the case of a property that has never been occupied, the date Land & Property Services (LPS) has determined the property to be completed.

After the three-month free period, rates will be billed at 50% of the normal occupied amount. The property must then be occupied for at least six weeks before a further three-month free period can be applied.

What is meant by vacant?

Generally, a property will be considered vacant for rating purposes where it is unoccupied, unfurnished, and not used for storage purposes.

Who will have to pay non-domestic vacant rates?

The person entitled to possession of the property - this is usually the owner, but may be the leaseholder. This person is also responsible for informing LPS of any change of circumstances that may affect the exclusion from rates.

How are non-domestic properties valued?

A non-domestic property is assessed on the basis of its rental value, known as the . Some non-domestic properties require a specialist assessment to reflect particular characteristics, for example, schools, licensed premises, and factories. Each property is valued in line with other comparable properties in the area. LPS will classify and distinguish (describe) a property according to its characteristics. This description will be set in line with the principle that property should be valued in its current state and as if it were put to its best use.

You must inform LPS if there are any physical alterations to the property or changes in the use of the property that may affect the valuation.

How do I inform LPS that my property is vacant?

The person who is responsible for the payment of rates on the property must notify LPS immediately of any change of circumstances that may affect their liability.

If your property is unoccupied, unfurnished, and not used for storage purposes, you must complete the following declaration form to confirm the property is vacant. LPS will not make any changes to your account without a signed declaration, and you will not be able to avail of the three-month vacant free period (if applicable) and the 50% reduction in rates for the period of vacancy.

Please note that this declaration is to be completed by all non-domestic properties.

Non-domestic vacant rating declaration form (PDF, 390K).

Is there a threshold to which non-domestic vacant rating applies?

Any empty property with a rateable NAV below £2,000 will not be charged rates. This exclusion is automatically applied when LPS are notified that the property is vacant.

Are rates payable on vacant land?

It depends. For vacant property rates to be charged, there must be a vacant building. Anyone owning or leasing disused car parks and yards may be charged occupied rates.

I don't think my property would be able to command a rent in its current physical state. What should I do?

Persons entitled to possession of derelict buildings who believe that their property is not capable of commanding a rent in its existing state should contact LPS. You can apply for a revaluation of your property. You must continue to pay your rates bill while your application is being considered. If your application is successful, LPS will refund any rates you have overpaid.

Am I eligible if my property is being revalued?

If your property is unoccupied, unfurnished, and not used for storage purposes, you can complete a declaration form stating your property is vacant. You must continue to pay your rates bill while your application is being considered. If your application is successful, LPS will refund any rates you have overpaid.

For more help and advice regarding NDVR, contact LPS - see contact details at the bottom of this page.

What is the difference between Non-Domestic Vacant Rating and a Non-Domestic Vacant Rating Exclusion?

Non-Domestic Vacant Rating applies to all properties that are unoccupied, unfurnished, and not used for storage. Properties with an NAV under £2,000 will receive a 100% reduction towards vacant rates. Properties with an NAV over £2,000 can avail of a three-month vacant period, plus a 50% reduction every month thereafter.

Non-Domestic Vacant Rating Exclusion applies to additional information about the vacant property with an NAV over £2,000. See exclusions below.