Changes are in store for property owners with
the Rating (Empty Properties) Act 2007 coming into force on 1st
April. The Government have introduced the Act as an incentive
to bring empty properties back into use to encourage redevelopment
of properties already in existence to avoid unnecessary development
on green land, and also to encourage letting of properties.
The changes affect the applicable rate relief on empty or disused
property. Under the present rules, most empty business
properties enjoy a full rate of exemption for the first three
months and 50% relief thereafter. April 1st will see the
relief being reduced to 0% after the exemption period. Vacant
industrial and listed buildings enjoy complete exemption at all
times. However, under the new rules, this will be limited
to a 6 month period.
The changes will mean that property that has been empty for more
than 3 months, or, more than 6 months for industrial property,
will no longer receive any relief from rates and the full amount
will become payable.
There is an exemption for some properties under the new regime. From
1st April 2008 any small property with a rateable value below £2200
and any charity or community amateur sports club will continue
to benefit from rate relief.
Other exempt properties are those in such a poor condition it
cannot economically be repaired. However, the Government
has laid down new anti-avoidance measures to prevent owners from
deliberately vandalising their own properties to this point,
or from stripping them down to shell and core, with the intention
of avoiding liability.
Property owners will receive bills detailing the increased charges
in March 2008, which will be payable under normal instalment
arrangements. |
