Empty Rates Relief Cut from 1st April 2011
In the Chancellor’s 2009 Pre-Budget Report, the Government announced that from 1st April 2010 to 31st March 2011, no Business Rates will be payable on empty business properties with a Rateable Value up to £18,000.
However, from 1st April 2011, the rateable threshold below which empty properties are exempt will revert to its normal level. This was previously £2,200 to 31st March 2009, but will be adjusted in line with the general movement in property values at the revaluation to those properties with a rateable value under £2,600.
This is a significant difference, with the Government suggesting the move will save the Exchequer circa £400 million per year.
Implementation of the lower threshold will have far reaching financial implications on property owners, who will want their empty properties occupied as soon as possible. This may result in a greater number of incentives available for tenants as well as lower rentals from a tenants perspective this is great news. Not so for the landlord, particularly in these tough economic times and when finding tenants can be very difficult.
