A controversial tax on empty properties will hit businesses, halt development and see a wave of existing buildings demolished in the face of huge tax bills, said the BPF today.
Deirdre Hipwell, Property Week – 11 August 2008
It warned today that businesses occupying commercial premises are being hit hard and taking at least 50% of the tax burden through leases on property they no longer need.
The changes in empty rates relief came into force on 1 April. Owners of empty properties now face 100% rates bills after six months of vacancy for industrial property, and three months for all other commercial property.
The BPF said that while landlords can take the decision to demolish a building occupiers cannot simply demolish unwanted space and have no choice but to continue to pay full rates even on empty property. It said many face bankruptcy as a result which will stifle the UK’s economic recovery.
Businesses holding warehouse or factory space, which previously were subject to 100% relief, have been particularly hit by the withdrawal of relief. Full Article
