Empty properties exemption
The measure
The 2008 Pre-Budget Report announced that empty properties with rateable values of up to £15,000 would be exempt from business rates for 2009-10, exempting an estimated 70% of empty properties from paying business rates. The Pre-Budget Report announces that the Government will extend the temporary increase in the threshold for empty property relief for a further year. For 2010-11, empty commercial properties with rateable values up to £18,000 will be exempt from business rates, continuing the exemption for an estimated 70% of empty properties.
Who will be affected?
Businesses holding empty properties. The Government estimate that 70% of empty properties will be exempt from business rates as a result.
When?
The exemption is being extended to apply for 2010-11.
In spite of this being a temporary step, it is likely to be viewed as a positive step for businesses holding empty properties. However, for the 30% of the property owners breaching the exemption, the lack of empty rates relief continues to be an unjust burden on developers and landlords who argue the need to abolish this tax to kick start the industry.
