Campaign to reverse business rates change
Monday, July 07, 2008
The Government is to benefit from the slump in the commercial property market, raking in £100m more than it expected from controversial changes to business rates.
The Government withdrew commercial property rate relief on empty buildings in April to encourage landlords not to leave buildings empty.
But rising vacancy levels in the sector mean landlords will have to pay millions of pounds more in rates on empty buildings than was forecast when the changes were introduced.
Figures from property agent NB Real Estate suggest that since the change in the law was first proposed, the number of vacant commercial buildings has jumped 15pc, resulting in a substantial increase in the rates payable on empty buildings.
Andrew Warde, director of rating at NB Real Estate, said: "This empty rates tax was conceived when the property market was performing strongly, but the downturn is heaping misery upon misery. The Government's belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain."
Under the new legislation the 15pc increase in vacancy levels will result in landlords paying 15pc more business rates on their portfolio of empty buildings. For the Government this will result in a similar increase in its tax take on empty buildings. Original estimates ranged from £950m to £1.4bn.
Original article continues at Telegraph Business news
The Government withdrew commercial property rate relief on empty buildings in April to encourage landlords not to leave buildings empty.
But rising vacancy levels in the sector mean landlords will have to pay millions of pounds more in rates on empty buildings than was forecast when the changes were introduced.
Figures from property agent NB Real Estate suggest that since the change in the law was first proposed, the number of vacant commercial buildings has jumped 15pc, resulting in a substantial increase in the rates payable on empty buildings.
Andrew Warde, director of rating at NB Real Estate, said: "This empty rates tax was conceived when the property market was performing strongly, but the downturn is heaping misery upon misery. The Government's belief that landlords keep buildings empty without good reason is just plain wrong and the blanket application of additional rates tax just doubles the pain."
Under the new legislation the 15pc increase in vacancy levels will result in landlords paying 15pc more business rates on their portfolio of empty buildings. For the Government this will result in a similar increase in its tax take on empty buildings. Original estimates ranged from £950m to £1.4bn.
Original article continues at Telegraph Business news
Labels: business rates change, commercial property rate relief, Housing market, NB real estate, property analysis, property development
