CHANGES TO THE RATES LIABILITY OF EMPTY AND PARTLY OCCUPIED BUSINESS PROPERTIES WHICH TOOK EFFECT FROM 1 APRIL 2008
In 2008, Business rate empty property relief was reformed in order to provide a strong incentive to bring empty property back into use. The Government believed that this would help to increase the supply of premises to let, and so reduce business rents and improve competitiveness in the UK. The reality of this legislation is having a notable impact upon all owners of empty properties and particularly so in the current economic climate.
Commercial properties which have been empty for more than three months or, in the case of industrial property, for more than six months, no longer receive relief from rates. After the initial three or six month rate-free period expires, empty properties are 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. In addition, Bissett Kenning & Newiss have identified a number of other ways in which to overcome and lessen the impact of this legislation. Should you be affected by this legislation please contact one of our offices and one of our Surveyors will be more than happy to discuss all options with you.
March 2011