CHANGES TO THE RATES LIABILITY OF EMPTY AND PARTLY OCCUPIED BUSINESS PROPERTIES TO TAKE EFFECT FROM 1 APRIL 2008
Business rate empty property relief has been reformed in order to provide a strong incentive to bring empty property back into use. The Government believes this will help to increase the supply of premises to let, and so reduce business rents and improve competitiveness in the UK. Although your property(s) may currently be occupied and remain so for the foreseeable future it is important that you are made aware of these major changes.
As of 1 April 2008, most property that has been empty for more than three months or, in the case of industrial property, for more than six months, will no longer receive relief from rates. After the initial three or six month rate-free period expires, empty property will be liable for 100% of the basic occupied business rate.
If your property is not capable of beneficial occupation, for instance, if it is in poor condition and cannot be economically repaired, the Local Valuation Officer may judge that it should be taken out of the rating list altogether.
Bissett Kenning & Newiss are currently looking into a number of ways in which to overcome this issue. Should you be affected by this new legislation please contact one of our offices and one of our Surveyors will be more than happy to discuss all options with you.
March 2008