Changes to Empty Property Rate Relief from 1st April 2008 for England and Wales.
These are,
· Three months exemption for empty retail, office and other non-industrial or warehouse properties, but a 100% charge, ie the full amount, after that.
· Six months exemption for empty industrial or warehouse properties then 100% charge after that has expired.
· The three or six month exemption period would be calculated from when the property was first vacant and so the 100% charge could kick in from 1st April 2008.
Government were consulting on other issues which included: should empty listed buildings continue to be exempt from empty property rates, should anti avoidance legislation be introduced in anticipation of owners carrying out constructive vandalism to render empty property incapable of occupation and so seek deletion of their rating assessments. The consultation period expired on 1st October 2007 and the Department of Communities and Local Government has just announced their decisions. They are:
· Listed buildings will continue to receive 100% exemption from paying empty property rates when vacant.
· Companies in Administration. Empty properties that are owned by Companies in Administration will receive 100% exemption from paying empty property rates when vacant.
· Anti avoidance tactics by property owners. Evidence suggests that the amount of anti avoidance activity by property owners to avoid paying empty property rates would be low and so Government have deferred introducing anti avoidance legislation until there is evidence that there is activity taking place.
· If an empty property is re-occupied for more than six weeks and becomes empty again it will re-qualify for an exemption period of three or six months from empty property rates before a 100% charge is again due.
Also for partially occupied properties, relief under Section 44A Local Government Finance Act 1988 will apply
for a maximum of three or six months depending upon the type of property which is empty. This change is
welcomed as without the modification to the regulations Section 44a relief would disappear from 1st April
2008.
If you have a property that has been empty for over 12 months under The Business Premises Renovation
Allowances Regulations 2007, you may qualify for 100% capital allowances for certain capital costs of
renovating your property to enable it to be brought back into use.