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The Rating (Empty Properties) Act 2007 comes into force on 1 April. Its
main effect is to reduce the exemption from empty property rates.
Currently, most empty business properties receive 100% relief for the
first three months of vacancy, and 50% thereafter.
Vacant industrial and
listed buildings enjoy 100% relief at all times. From April, there will be a
three-month rate-free period for most non-industrial businesses, and a
six-month rate-free period for industrial properties (but fully occupied
rates will then become payable).
In addition there are new anti-avoidance provisions. This will prevent
owners from deliberately vandalising their properties to a point when it
is not economically reasonable to repair them (or stripping to shell and
core) so as to avoid rates liability.
The basics for the regime have been fixed. Consultation is still taking place
on some of the detail (see chart below). Source: Berwin Leighton Paisner.
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© Practical Lawyer
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November 2007 |
