Business rates for 202425 and changes to empty property relief

Business rates can feel like a perennial headache for property owners and occupiers alike. With the 2024–25 rating year now well underway, it’s worth taking stock of what’s changed—particularly around empty property relief, which affects many businesses across the Midlands. Whether you’re navigating a vacant unit or managing multiple properties, understanding the current landscape could save you significant money.

What’s Changed for 2024–25?

The Valuation Office Agency (VOA) has revalued properties across England based on rental values as at 1 April 2023. For many businesses, this means their rateable values have shifted—sometimes considerably. Alongside the revaluation, the Government has maintained the small business rates relief scheme and multiplier levels, but empty property relief rules have tightened further.

The key takeaway: if you own or occupy empty property, the reliefs available to you may be narrower than in previous years, and the timescales for claiming are strict. We’d strongly recommend reviewing your property portfolio now rather than discovering unwelcome bills later.

Empty Property Relief: The Tighter Rules

Empty property relief hasn’t disappeared entirely, but the conditions have become more stringent. Under current rules, properties that are genuinely empty and unoccupied can receive full relief for up to three months, provided they meet specific criteria.

After that initial three months, relief drops significantly. Many properties now attract 50 per cent relief for a further nine months (up to 12 months total), after which full rates become payable—unless the property qualifies for one of the specific exemptions.

What counts as “empty”? The property must be genuinely unoccupied and not in use. If you’re carrying out works to prepare it for occupation, or it’s temporarily empty whilst you market it, the relief rules may still apply—but the VOA has become increasingly robust in challenging borderline cases.

Common pitfalls we see:

• Owners assuming relief is automatic (it isn’t—you must notify the local authority)
• Failing to provide evidence of genuine vacancy
• Keeping stock or minimal fixtures inside, which can be interpreted as “in use”
• Missing deadlines for appeals or applications

If you’re unsure whether your property qualifies, it’s worth taking professional advice. The cost of getting it wrong—potentially years of backdated bills—far outweighs a consultation fee.

Small Business Rates Relief and Reliefs You Might Claim

If you’re a small business occupier rather than a property owner, you may be eligible for small business rates relief. This is currently available to properties with a rateable value of £15,000 or less (in most of England), offering either 100 per cent relief where the rateable value is £12,000 or below, or tapered relief where it’s between £12,001 and £15,000.

Beyond this, there are other reliefs worth investigating:

• Charity relief: 80 per cent for registered charities
• Rural rate relief: For properties in sparsely populated areas
• Retail, hospitality and leisure relief: Varying rates depending on sector
• Hardship relief: Discretionary, applied by local authorities

The local authority (in the Midlands, usually the district council) administers these reliefs. Applications aren’t always straightforward, and missing a deadline can be costly. Make sure you’re claiming everything you’re entitled to.

Getting Your House in Order

The 2024–25 year is a good moment to audit your property position:

1. Check your rateable value on the VOA website. If you believe it’s wrong, you can challenge it (though windows for appeals vary).
2. Verify your relief status with the local authority. If you’re empty, ensure they have it recorded correctly.
3. Document everything. Keep records of when properties became empty, works undertaken, and any efforts to let or sell.
4. Plan ahead. If a property is approaching the end of its relief period, consider what action you’ll take—whether that’s occupation, disposal, or accepting full rates.

Conclusion

Business rates reform remains a hot topic, and whilst the fundamentals haven’t changed radically for 2024–25, the tightening of empty property relief means complacency is risky. Many businesses and property owners are paying more than they need to, simply because they’re unaware of reliefs, exemptions, or changes in the rules.

A small investment in professional advice now could prevent expensive surprises later. Severn Accounting has helped numerous Worcestershire businesses and property owners navigate the business rates landscape—and we’d be happy to review your position.

For tailored advice, contact Severn Accounting — we’re here to help.