Who pays Business Rates
The organisation or person using the property pays the Business Rates. If you are the owner of an empty property you may have to pay Business Rates at a discount of 50%. Although this is due to change from the 1st April 2008.

Reform to Empty Rates from 1/4/2008

Background
The Government is taking action to reform empty property relief for Business Rates following the recommendations made in the Lyons Enquiry into Local Government.

It is seeking to provide a strong incentive to bring empty property back into use. It feels that this will increase the supply of premises to let, and so reduce business rents and improve the competitiveness of the UK, as well as bringing forward brownfield sites for re-development and so reduce the need for development on valuable greenfield land.

Current position
Property becomes empty – 3 months rate free period applies
Thereafter, charged at 50% whilst empty
Certain properties are exempt – industrial, listed buildings and small properties with rateable values of less than £2,200.

Proposed changes from 1st April 2008
100% rate liability after 3 months on non-industrial premises
100% liability after 6 months for industrial premises
Certain properties still exempt – properties held by a charity and community amateur sports clubs (CASC)

How is your bill calculated?
We work out your rate bill by multiplying the rateable value of your property by a figure known as the rate multiplier. The Valuation Office Agency (an agency of the Inland Revenue) sets the rateable value of your property and revalues all business properties once every five years.

The last change in rateable values applied from April 1 2005. From this date two rate multipliers were set by Central Government:

1) The small business multiplier, applicable to those businesses eligible for Small Business Rate Relief, and
2) the standard rate multiplier, which includes the supplement to pay for Small Business Rate Relief.

From April 1st 2008
The Small Business Rate multiplier is 45.8p
The Standard Rate multiplier is 46.2p

Any rise or drop in the rateable value of your property from the 1 April 2005 will be phased in over a period of time. This is known as the transition scheme. If this applies to your bill, it will automatically be shown.