Jul 13 2007
The Government’s drive to revitalise our villages, towns and cities by bringing empty shops, offices and factories back into use continued today with publication of a consultation reviewing business rates for empty properties.
Launched by Local Government Minister John Healey, the consultation seeks the views of property owners, developers, surveyors and councils on potential reform of detailed aspects of the empty property rates regime.
In particular, it will propose ways to tackle rate avoidance. Most property owners do not deliberately vandalise their empty property in a bid to avoid rates. However a small minority may be tempted to render it incapable of economic repair to avoid paying the rates by, for example, removing the roof.
It also examines the tax concessions for empty listed buildings like shops, offices and visitor attractions and whether their current exemption from the business rates can be justified.
Another area of concern is the current, possibly perverse, incentive whereby companies in liquidation are exempt from empty property rates while those in administration are not. Stakeholders have expressed fears this could encourage insolvencies with the subsequent loss of jobs and knock-on effect on supplier and creditor businesses.
John Healey said:
“The modernisation of empty property relief is a major element of a broad package of measures which promote the efficient use of land and property, announced in the 2007 Budget.
“We’ve already acted to provide a stronger incentive for owners to bring empty shops, offices, factories and warehouses back into use - helping to revitalise town centres, reduce rents for businesses and bring forward new opportunities for commercial and housing development on brown-field sites. The Rating (Empty Properties) Bill, has successfully completed its passage through Parliament and awaits Royal Assent.
“Now, as promised during the passage of the Bill, we are consulting fully on the issue of deliberate avoidance as well as inviting comment on exemptions for listed buildings and possible exemptions for properties owned by firms in administration “
Full details of the ‘Modernising Empty Property Relief’ consultation can be seen on the Communities and Local Government website at www.communities.gov.uk/index.asp?id=1511767.