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Although the final conclusions of the Government’s review of the empty rating relief provisions have not yet been published, it has been proposed in a consultation document circulated earlier this year, that the current system of reliefs for vacant property is to be amended with effect from 1 April 2008.
The current position is that vacant premises attract the following reliefs:
Offices, shops and other commercial premises receive 3 months rate free from the date they become vacant and thereafter are granted 50% relief on the full business rate.
Industrial properties, including factories, warehouses and stores receive 100% relief from the date they become vacant.
The Government proposes to change this to the following:
Commercial premises will receive 3 months rate free only and thereafter will attract the full business rate.
Industrial premises will receive 6 months rate free and thereafter will be charged at the full business rate.
It should be noted that if a building is empty now and has already had relief granted for at least 3 or 6 months prior to 1 April 2008, it will immediately be charged at full rate from that date.
The position in respect of listed buildings (which currently obtain full relief) is also under review, although no firm proposals were made in the consultation document.
The Government has also committed itself to anti-avoidance measures, regarding the deliberate vandalisation of buildings to render them uninhabitable, although how this will be achieved to avoid penalising genuine cases remains to be seen.
If you require any further information, advice or assistance do not hesitate to call Paul Taylor, Edward Wright or Andy Hart on 0114 276 7074.
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