Award Winning
commercial property solutions
The two year ‘special offer’ by the Government whereby landlords with empty commercial properties with rateable values below £18,000 (2010-11 and £15,000 2009-10) escaped paying business rates has now ended, says commercial property agency prop-search - delivering another blow to the industry.
Simon Toseland, a Director at prop-search, said: “With effect from 01 April 2011, the threshold rateable value has been reduced dramatically to the level of £2,600. This deprives the owners of small, but reasonably substantial vacant commercial properties of the 100% exemption from empty rates that they have enjoyed since the start of the 2009-10 rate year.”
In light of difficulties faced by commercial property owners during the downturn, many industry professionals had hoped that the threshold would not be reduced. However, this is not the case and from 01 April 2011, any shop or office property that has been empty for more than three months - or six months in the case of industrial buildings - will be liable for empty property rates.”
Prop-search also notes that the government’s use of the retail prices index (RPI) rather than consumer prices index (CPI) means that the new Uniform Business Rate multiplier is set to increase by almost 4.6%, from 41.4p to 43.3p for most properties. This means that in most cases, business rates will rise by more than the true rate of inflation despite calls for the Government to utilize a clause in the legislation that permitted a lower than RPI increase to be applied. There is a logical argument that the increase should have been pegged to September’s CPI increase of 3.1% especially as the Government is using this mechanism as the measure to which certain benefit payments are linked.
There are however, some measures that can maximise the reliefs that are available to landlords/tenants. Prop-search is able to assist with advice and options in connection with the business rates relief cut and further information can be obtained from its office - Tel: 01933 223300 or website: www.prop-search.com