Businesses
across
the
country
could
find
their
rent
dropping
due to
new
changes
in
property
relief
that
came
into
force on
1st
April
2008. If
you have
or may
soon
have
business
properties
that are
not in
use you
need to
be aware
that
your
costs
may soon
go up.
Changes to the out of date system of reliefs have removed perverse
incentives to keep buildings empty, and
encourage owners to bring them back into
use, helping to revive high streets and town
centres.
Businesses that rent premises will particularly benefit through an
increase in the availability of properties,
thereby reducing rents and increasing the
UK's competitiveness.
The changes mean that most empty commercial properties move
straight to a full rate of tax after the
three month 100% relief. The 50% rate no
longer applies. Factories and Warehouses
have a six month rate-free period, moving to
full rate afterwards.
Charities, community amateur sports clubs and companies in
administration are be granted a complete
exemption from rates on their empty
properties.
Local Government Minister John Healey said: "These reforms are good
for businesses, the environment and most of
all, good for our communities. No-one wants
to live or work in a ghost town of empty
offices and closed-down shops. These changes
will help bring empty buildings back into
use, reduce rents for small independent
shops and create thriving high streets and
town centres.”
Local authorities have powers to make owners
clean up buildings, sites or streets they
own if they ‘adversely affect the amenity of
the local area’. If owners do not act the
council can take the action themselves and
recover the cost.
For more information on taxation issues
visit our Accounting section.
