Empty property rates relief

Desmond Hirsch, a director at Cambridge based commercial property consultants and chartered surveyors Januarys, is reminding businesses and other organisations that occupy non-domestic premises in England that new rules now apply to business rates and empty property rate relief – and they could be advantageous.

 

The changes, which came into effect on 1^st April, make differences in two important areas.

 

Firstly, there’s an increase in the threshold at which an empty property becomes liable for business rates. This threshold now stands at a gross rateable value of £15,000.

 

Secondly, the restriction requiring properties to be on the rating list as of April 1 to qualify for small business rate relief in that year has been removed.

 

This means that eligible small businesses will be able to claim small business rate relief from the date they occupy a property.

 

“These changes are good news for around 70% of businesses who occupy premises of this rateable value,” says Mr Hirsch. “They could also represent a considerable saving for developers and property freeholders.”

 

But it’s not all good news on the rate front. Despite pressure from the British Property Federation, the government will not be reintroducing empty property rate relief across the board. Property with a rateable value of more than £15,000 that has been empty for more than three months – or, in the case of industrial property, for more than six months – will still be liable.

 

Speaking recently, the Prime Minister Gordon Brown said, “Reintroducing the previous relief from rates for all empty property would cost £950 million and would remove the incentive to reuse commercial property.”

 

“We welcome any help that the government is offering hard pressed businesses and property owners,” says Mr Hirsch. “And as always, our experts are on hand to ensure firms get the most from these benefits.”