J&E Shepherd Chartered Surveyors is highlighting to clients key cross border differences in the treatment of vacant properties as property owners review their property costs in the face of the recession.

There are some key differences in the rating treatment of unoccupied property in Scotland as compared with England and Wales. In both countries, empty property relief now covers any company in administration or liquidation.

Alan McKenna, FRICS, Dip Rating, head of rating at J&E Shepherd, said: "In the last couple of years the two systems have moved slightly apart and properties in Scotland are now treated slightly more favourably than properties south of the border. The current situation in Scotland is that vacant industrial property receives 100% relief of rates for an unlimited period of time."


Retail and office premises achieve 100% relief of rates for the first three months followed by rates being charged at 50% thereafter. Vacant properties with an RV of less than £1,700 are granted 100% relief of rates for an unlimited time. In addition, vacant properties in a listed building are due 100% relief of rates.

"But in England the treatment of empty property was altered in April 2008. These changes have led, in extreme cases, to property owners in England and Wales resorting to demolishing their properties to avoid paying rates," said Mr McKenna.

South of the border industrial properties have a six months rate free period, followed by full rates being charged after six months. From 1st April 2008, retail and office premises are granted a three months rate free period with full rates being charged thereafter.

In England, previously, vacant properties with a Rateable Value of less than £2,200 attracted 100% relief of rates. This provision has been widened from 1st April 2009, and properties with an RV of less than £15,000 now receive 100% rates relief.

As in Scotland, vacant listed buildings are granted 100% relief of rates.

(GK/JM)