End of Empty Property Rate Relief will act as a brake on regeneration in many areas
01/04/08 | 00:01
April 1 sees the end of Empty Property Relief for vacant commercial and industrial properties.
Commenting on the removal of the relief, David Frost, Director General of the British Chambers of Commerce, said:
"We are very concerned that removing tax relief on empty buildings will act as a brake on regeneration in many of the country's most deprived areas.
"The relief was an incentive for businesses to bring empty commercial and industrial property back into use and it has benefited many of the poorest communities.
"At a stroke, the government's new policy will hit disadvantaged areas and create financial insecurity for companies currently in possession of empty properties. This is little more than another tax hike on business."
Ends
Media Contact:
Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk
Notes to Editors
Current legislation allows industrial property owners to obtain 100% rate relief for unoccupied buildings. Commercial property owners receive 100% rate relief for the first three months and 50% relief thereafter. From today, industrial property owners will obtain 100% rate relief for only the first six months that a building is vacant. All other empty commercial properties will have three months’ rates relief before incurring the full amount.
The Treasury has estimated that the new plans will generate £950 million in this fiscal year and a further £900 million in 2009-10. This is a staggering £1.85 billion tax take on business over the next 2 years.
Source of figures - HM Treasury Budget 2007 (HC 342)