Earlier this year, we reported on empty property rates and strategies a property owner might consider in order to reduce their liability for business rates.
Since that article, a new empty property rates relief scheme has been introduced. New properties that are completed between 1 October 2013 and 30 September 2016 may qualify for an 18 month period of rates relief provided they remain unoccupied for the first 18 months after construction.
This will offer a welcome boost to the property and construction industry as the Treasury considers this relief could be worth £150m to the property sector and could benefit more than 11,000 new commercial properties*.
Exchequer secretary to the Treasury David Gauke said "This government is committed to supporting business and encouraging growth. We want to provide targeted support, where it is most needed, and it is hoped the empty property rates relief will incentivise the construction industry by reducing risk"**.
This recent change is the latest in a line of changes brought about by the government in relation to business rates liabilities and will be welcome news to property owners around the country. Hopefully reducing the liability of empty property rates will go some way to encourage more construction projects to go ahead as planned, however lack of finance still remains the main factor limiting construction activity***.
For more information regarding Commercial Property please contact Claire Garrod on 0114 266 6660 or email [email protected].
