Matthew Miller
Property Professional
 
6/12/2009 16:21:38
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 Subject: Business Rates - Empty Rates - No Change
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Business Rates – “Empty Rates” - Government Response - Friday 12 June 2009
Empty threat – e-petition response
We received a petition asking:
“We the undersigned petition the Prime Minister to repeal the current empty rates legislation and restore rate relief for commercial property to pre-April 2008 levels.”
Details of Petition:
“The undersigned call on the Prime Minister to restore business rate relief for empty property to the levels that existed before 1 April 2008 so that all unoccupied properties receive full relief for the first three months; shops and offices pay 50% subsequently; and industrial premises receive full relief indefinitely. This current tax means higher bills for us all. Council tax payers will be hit, education budgets will need to be cut, the NHS will have greater costs and our businesses small and large are already suffering across the country.”
Read the Government’s response
The Government has no long term plans to reverse the changes to empty property rate relief introduced from 1 April 2008, however, as with all taxes the Government will keep the position under review.
The Government decision to introduce from 1 April 2008 the reforms to empty property rate relief, charging 100% rates beyond the initial rate-free periods when properties stand empty, is right for the long term. It increases the incentive to re-let and re-use empty property.
The Government has listened to the concerns expressed by property owners. The Chancellor announced in the Pre Budget Report (2008) that for 2009-10 all empty properties with rateable values up to £15,000 will be eligible for full relief. Up to 70% of all properties are rated under this threshold and if empty will pay no rates in 2009-10.
Re-introducing the previous relief from rates for all empty property would cost £950m and would remove the incentive to re-use commercial property. The new time limited relief for lower value properties will help owners of smaller properties manage short-term pressures due to difficult property market conditions.
Miller Property Consultants’ Comment:
Status quo remains, with “Empty Rate” currently equal to the Full Rate:
• Industrial / Warehouse Property: 6 months rate free then “Empty Rate”
• All other Commercial Property: 3 months rate free then “Empty Rate”
 
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