Business Rates Relief 2026: What The Changes Mean For Empty Commercial Property
Business rates relief in 2026 has generated plenty of headlines. New multipliers, additional support and changes following revaluations have all attracted attention. This is particularly true for retailers, hospitality businesses and leisure operators. But what if you are a landlord or asset manager with an empty commercial property? The distinction matters. Most of the headline business rates relief changes for 2026/27 apply to occupied premises. If your shop, office, warehouse or other commercial building is standing empty, the fundamental rules governing your liability have largely stayed the same.
With the Autumn Budget scheduled for 28 October 2026, this guide cuts through the noise. We explain what has actually changed and what it means for empty property risks. We will also share practical options for landlords looking to reduce the cost of a vacant building.
What Is Actually Changing In 2026/27 Business Rates
Business rates in England are changing significantly for the 2026/27 financial year. However, the benefits and risks aren’t always clear. Landlords need to understand exactly what changes mean to plan effectively. From 1 April 2026, qualifying occupied retail, hospitality and leisure (RHL) properties have benefited from permanently lower business rates multipliers. For properties with a rateable value below £51,000, the small business RHL multiplier is 38.2p. For RHL properties with a rateable value between £51,000 and £499,999, the standard RHL multiplier is 43.0p. Both sit 5p below the equivalent national multipliers. A new higher multiplier of 50.8p applies to properties with a rateable value of £500,000 or more. Eligible pubs and live music venues receive an additional 15% business rates relief during 2026/27, after the application of certain other reliefs.
There is also a new Supporting Small Business Relief scheme. This scheme increases the relief cap for qualifying businesses affected by the 2026 revaluation and the loss of Small Business Rate Relief, Rural Rate Relief or previous RHL relief. These changes matter for qualifying businesses, but they apply to occupied premises. They do not rewrite the empty property business rates regime.
Business Rates Relief 2026 Does Not Change The Rules For Empty Property
The new lower RHL multipliers apply to qualifying properties being used for retail, hospitality or leisure purposes. The 15% relief for pubs and live music venues similarly require the property to be occupied. A genuinely empty commercial property therefore remains subject to the well-established empty property relief rules. In most cases, when a commercial property first becomes empty, business rates are not payable for three months. Certain industrial properties and warehouses receive a longer, six-month exemption. Once that period expires, full business rates normally become payable again.
That means a landlord who has already used the three- or six-month exemption should not expect the 2026/27 reforms to provide a new relief period simply because the wider business rates system has changed. At this stage, the choices become much narrower. You can pay the full rates, establish whether the building qualifies for one of the continuing exemptions, or consider bringing the property back into genuine occupation. For many commercial landlords, this is where charity occupation and business rates become particularly relevant.
What Business Rates Relief Is Available For Empty Property?
Empty property relief normally removes business rates for the first three months a commercial property is vacant, or six months for qualifying industrial and warehouse properties. After this, full rates normally become payable unless a specific exemption applies or the property returns to qualifying occupation.
Some properties remain exempt while they are empty. Examples include:
- listed buildings
- properties with a rateable value below £2,900
- certain properties owned by charities and intended for future charitable use
- certain properties used for community use
- certain properties where the owner is bankrupt, in administration or deceased.
These exemptions are important, but they do not solve the problem for most commercial landlords. Most commercial property is not listed, for example, and a substantial proportion has a rateable value considerably above £2,900.
This leaves genuine occupation as an important option. Where a property is temporarily occupied for charitable purposes by a qualifying charity, charitable rate relief can provide up to 80% relief from business rates. A local authority may also provide additional discretionary relief, potentially taking the total reduction to 100%. This arrangement differs from the initial empty property exemption. The three- or six-month empty property period is temporary. It starts when the qualifying property becomes vacant and has a defined end point.
Genuine community-driven and charitable occupancies are different. As long as the relevant conditions continue to be met, charitable relief will continue while the qualifying charitable use remains in place. This is the principle behind ASTOP’s approach to reducing business rates on empty property. Rather than leaving a commercial building vacant, ASTOP identifies an appropriate registered charity or good cause that can put the property to genuine, productive use.
Relief is not automatic. Eligibility depends on the nature of the occupation, how the property is being used and the relevant local authority’s assessment, including any discretionary element of the relief.
What Is Likely In The Autumn Budget On 28 October 2026?
The Autumn Budget is scheduled for Wednesday 28 October 2026. For landlords with empty commercial property, however, building a property strategy around speculation carries risk. We simply don’t know what the Chancellor has planned. As of August 2026, no specific new business rates measure for empty commercial property has been confirmed.
This could change. Tax policy is inevitably the subject of considerable speculation ahead of a Budget. But rumours are not a sound basis for managing a commercial property portfolio. Landlords should instead work within the rules already in force.
What Should Landlords With Empty Property Do Before The Budget?
Waiting for October is not a strategy. If an empty property is already generating a substantial business rate liability, landlords and asset managers should establish their current position now.
The task starts by establishing whether your empty building already qualifies for an exemption. Landlords need to know their property’s current rateable value and whether factors such as listed status affect its liability. Next, establish exactly where the property sits within its initial empty property exemption. If the three-month period, or six-month period, has already expired, calculate the actual annual cost of keeping the building vacant.
It is risky to assume that the new RHL multipliers or other business rates relief 2026 measures will automatically reduce this figure. The most prominent new support is focused on occupied premises. Landlords should also be cautious about strategies based on brief periods of occupation designed simply to generate repeated empty property exemptions. The rules specifically restrict when a fresh exemption period arises after short-term occupation.
Consider the longer-term commercial and social case for temporarily occupying empty commercial property. If you are weighing up how to avoid business rates on empty property, your options are not limited to paying full rates until a commercial tenant arrives. Genuine occupation by an appropriate charitable organisation offers another route.
How ASTOP Helps Landlords With Empty Commercial Property
ASTOP works with landlords and asset managers across the UK to put empty commercial buildings into genuine charitable occupation.
We assess the property and find charities for empty buildings where the space realistically matches their activities. We then support the occupation process, including charity vetting, licence management and ongoing communication.
The result is not simply a business rates strategy. A building that would otherwise stand vacant becomes a useful asset for a charity or community organisation, while landlords gain the benefits associated with responsible temporary occupation. ASTOP also provides formal social value reporting to demonstrate the impact created.
At Croxley Park in Watford, for example, ASTOP worked with landlords and asset managers to bring vacant units into use by more than 20 charities. The project generated meaningful business rates savings while giving charities access to valuable space.
You can see our case studies for more examples of ASTOP’s work with commercial property owners, charities and good causes.
Business Rates Relief 2026: What Empty Property Landlords Need To Remember
The business rates 2026/27 reforms represent genuine change for occupied retail, hospitality and leisure premises. But they do not provide an equivalent support package for landlords simply because a commercial building is standing empty. Once the standard three- or six-month exemption expires, full rates normally return unless another exemption applies or the property’s circumstances change. This makes genuine occupation as important as ever.
ASTOP provides support for landlords with vacant buildings by connecting suitable empty commercial properties with registered charities and good causes. This puts buildings back into productive use, creates measurable community benefits and provides a legitimate route through which qualifying charitable occupation may reduce business rates liability. If you have an empty commercial property and want to understand your options before the Autumn Budget, talk to the ASTOP team.
Business Rates Relief 2026 FAQs
Does Business Rates Relief Apply To Empty Property?
Yes, but the options are limited. Most empty commercial properties receive an initial three-month exemption from business rates, extended to six months for qualifying industrial and warehouse properties. After that, full rates normally become payable unless another exemption applies. Many of the new business rates relief 2026 measures apply specifically to occupied premises rather than empty buildings.
How Long Is A Property Exempt From Business Rates When It Becomes Empty?
Most commercial properties are exempt from business rates for the first three months after becoming empty. Certain industrial and warehouse properties receive a six-month exemption. After the relevant period ends, business rates are normally payable at the full applicable rate unless the property qualifies for another exemption.
Does Charity Occupation Reduce Business Rates?
It can. A property wholly or mainly used for qualifying charitable purposes receives 80% mandatory charitable rate relief, and local authorities can provide additional discretionary relief.
What Happens To Business Rates After The Empty Property Relief Period Ends?
Once the initial three or six-month exemption expires, the owner will normally become liable for full business rates. Charity occupation is a strong source of ongoing relief.
Do The New 2026/27 Retail, Hospitality And Leisure Multipliers Apply To Empty Shops?
No. The lower RHL multipliers apply to qualifying used property that is wholly or mainly used for eligible retail, hospitality, or leisure purposes. An empty shop does not qualify simply because its previous or intended use falls within one of these sectors.
Should I Wait Until The Autumn Budget Before Dealing With An Empty Property?
No confirmed Budget measure changes the rules for empty commercial property. If a property is already generating a significant business rate liability, landlords should assess the options available under current rules rather than relying on possible future announcements.
