Colliers International UK
Empty Business Rates
Empty rates are the breaking point for some in the current market. By eliminating business rate relief on empty properties, companies are being penalised for situations where there is no income. Empty rates are making a bad situation worse.
Business rates on empty property
We’re collecting evidence of the detrimental effect empty rates have had on businesses for the British Property Federation’s campaign against empty rates. We’d like to hear how the government’s latest tax has affected business in your area.
- Speculative or regeneration projects not going ahead?
- Changes in demand for property/vacancy rates?
- Rent levels influenced by rising vacancy rather than falling demand?
- More secondary or end-of-life properties being demolished rather than rented at affordable levels?
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Contact us with your evidence
For advice on how best to minimise the effects of the new legislation on your business, contact one of our specialists by selecting the Rating department under Find a Person.
For more information on reclaiming overpaid business rates, talk to our rate audit and compliance specialists, Accurates.
Iniquitous, unfair, hurried and badly thought through
That was our considered opinion on the changes to commercial rates on empty properties.
The enabling legislation had already been passed, but by responding we hoped to ensure the consultation was not just a rubber stamp.
You spoke, the government listened
Your feedback was crucial in producing the presentation and producing a result. The government's response specifically referred to our document and the questions it raised.
As a result, although the 100% rate charge on empty properties still came into effect on 1 April 2008, the government agreed to:
- Defer introducing anti-avoidance regulations unless/until there is proof of abuse.
- Retain the six-week occupation rule before re-qualifying for a further three or six-month exemption period.
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In addition, it agreed to:
- Maintain the exemption from empty rates for listed buildings.
- Introduce a permanent exemption for empty properties owned by companies in administration.
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Pre April 2008 empty rates rules
Under the previous legislation, there was no liability for rates when the whole property had been continuously unoccupied for three months, and 50% liability after that time for offices and retail premises. There were exemptions for qualifying industrial hereditaments (including factories and non-retail warehouses), listed buildings, sites where occupation is prohibited, insolvent companies and buildings with a rateable value below £2,200.
How can we help
We played a key role in the consultation that preceded the new legislation’s introduction, helping to limit its impact on owners of empty properties. With a legal consultant on board, we can offer proactive advice on managing and minimising rate liabilities now and in the future.
We can ensure compliance with new and existing legislation. Examples of how existing clients have saved money can be found on the Accurates website.