commercial property
commercial litigation
company & commercial law
employment law
debt collection
corporate tax services
VAT consultancy
notary public services
agricultural & rural affairs
taxation farms & landed estates
charities
trusts
employment law
rural disputes
The End of Rate Relief!
Published March 2008 By Cheryl Leyser
The Rating (Empty Properties) Act 2007 comes into force on April 1. Its main effect is to reduce the exemption from empty property rates. Currently, most empty business properties receive 100 per cent relief for the first three months of vacancy and 50 per cent thereafter. Vacant industrial and listed buildings enjoy 100 per cent relief at all times.
But from April there will be a three month rate free period for most non-industrial businesses and a six month rate free period for industrial properties – but then rates will have to be paid as if the buildings were fully occupied. The Government has laid down new anti-avoidance measures to prevent owners from deliberately vandalising their properties to a point where it is not economically reasonable to repair them, or by stripping them down to shell and core, so as to avoid rates liability.
From April 1 however, charities and community amateur sports club properties will receive 100 per cent relief provided they continue to be occupied by a charity or community amateur sports club.
Small companies occupying premises with a rateable value below £2,200 will also continue to be exempt.
Nevertheless, for other commercial property owners, the new regime will begin on April 1 and it is essential to fully understand the effects of the changes in terms of both budgeting and compliance.
If you would like to find out more about the services that we provide, please e-mail or contact us to arrange a meeting.
