We summarised these provisions previously. The point, of course, is that prior to April most empty business properties received 100% relief for the first three months of vacancy, and 50% thereafter. Vacant industrial and listed buildings enjoyed 100% relief at all times. But, under the new provisions there will be a three-month rate-free period for most non-industrial businesses, and a six-month rate-free period for industrial properties (with fully occupied rates then becoming payable). The table in our previous entry summarises the detail. But, there are a few additional points to note:

• There is no transitional period. Thus, any property that has been empty for more than three months (or six months if an industrial building) as at 1 April will immediately be liable to full rates, without there being any transitional qualifying period.
• If premises are reoccupied for a minimum of six weeks after a period of vacancy, then the owner will receive a fresh initial exemption of three or six months when they become vacant again. Thus, temporary lettings do provide a means for owners to obtain a restart of the initial exemption period. Note that owners of industrial properties in particular (where the initial exemption is six months) will have a significant incentive to consider temporary lets. Likewise, owners of shopping centres with long-term vacancies may try to attract seasonal lettings, such as Christmas shops.
• If there is a new development, the LA cannot charge empty rates without the council having first served a completion notice (specifying either that the premises are complete and ready for occupation, or that they could be made ready for occupation within three months). In the past, most LAs declined to use the completion notice procedure, but it is expected that this will now change.

For an introductory article see [2008] 204 Property Law Journal 19. © Practical Lawyer