Business rates exemptions and reliefs

Part Occupied Relief

If a property is only partially occupied, the HMRC Valuation Office (VO) may be able to assess the occupied and unoccupied sections separately. Where this is possible, the unoccupied area may qualify for Empty Property Rate Relief.

If the VO cannot split the property into separate assessments, and the partial occupation is expected to be for a short duration, the ratepayer may be eligible to apply for Part Occupied Relief under Section 44A of the Local Government Finance Act 1988.

Section 44a of the Local Government Finance Act 1988

A ratepayer is normally liable for the full amount of business rates whether a property is fully occupied or only partly occupied. However, where a property is partly occupied and a clearly identifiable section will remain unoccupied for a temporary period, the council has discretion to grant Part Occupied Relief.

If the council decides to award this relief, it will request a Section 44A certificate from the Valuation Office (VO). This certificate apportions the property’s rateable value between the occupied and unoccupied areas.

These temporary apportioned values are used solely to calculate the amount of relief due and do not alter the official rateable value shown in the rating list. Once the relief has been applied, the council will issue a revised bill reflecting the reduced charge.

The relief period will end on the earliest of the following: when there is a change in the extent of the partial occupation, on 31 March of the financial year in which the relief is granted, or when the property becomes fully occupied or completely vacant.

You must notify the Business Rates section immediately if there is any change to the level of partial occupation.

As this is a discretionary relief, Wirral Council must be satisfied that the property is partly occupied, and that the partial occupation is only temporary, before any Part Occupied Relief is awarded. Circumstances where relief may be considered include: 

  • a move into the whole premises gradually over a period of time
  • vacating the premises gradually over a period
  • where a temporary downturn in business has caused the part occupation
  • temporary part occupation necessary to allow remedial building or refurbishment works due to fire damage or similar

The council may arrange for the premises to be inspected. Retrospective applications cannot be considered.

If you believe the partial occupation will not be temporary and therefore does not qualify for Part Occupied Relief, you should contact the Valuation Office (VO) to request that the property is split into two separate assessments.

Once this has been completed, the council will issue individual business rates bills for each assessment, and Empty Property Rate Relief may be applied to the unoccupied part.

Further information on how to request this can be found in the “How do I appeal?” section on GOV.UK

While your application is being processed, your current business rates remain due and must be paid as billed.

Apply

For your application to be considered, the requisite supporting information will be required:

  • a detailed plan of the premises clearly demarcating the occupied and empty parts of the premises along with the exact measurements of each area. We may also ask for further evidence
  • the date the part occupation commenced
  • the reasons why the property is temporarily part occupied
  • the future for the unoccupied part or parts of the premises and the date when the part occupation is to cease. This may be details of reoccupation or details of when the whole property is to be vacated

If the partial use of the property is due to a phased occupation or vacation of the property, separate plans for each stage will be required.

To apply for this relief, either: