EMPTY RATES

On the 1 April 2008 the government brought in changes to the rates liability for empty property.

Prior to this date, following an initial void period shops, offices and most other non-domestic properties were liable to pay 50% of the full rates bill. Industrial premises were treated even more favourably when empty as no rates were payable.

The situation now is that after an initial void rates period virtually all properties attract the full rates charge. This tax has to be paid by whoever is in control of the property - this could be a tenant but, in many instances, it will be the owner.

This change in Empty Rates liability is leading to significant hardship - at a time when many businesses are already under severe financial pressure owing to the recession.

In response to lobbying by business organisations the government has announced a minor concession:- from 1 April 2009, and for one year only, empty properties with a rateable value of less than £15,000 will not be subject to business rates.

There are certain measures which may be able to be taken so as to minimise Empty Rates liability. Jeffersons experienced rating team will be pleased to provide the necessary assistance. Jeffersons can advise businesses of these options and discuss whether it will be possible to implement them.

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