The commercial property sector faced a rude awakening in April 2008, when new empty property rates legislation came into effect in England and Wales. Coupled with a downturn in the economy, owners, occupiers, developers and landlords now face additional property costs for any property interests that are wholly or part vacant.
The industrial sector is particularly vulnerable to empty property rates changes because it used to enjoy full relief on vacant properties.
Rating law is complex and the new rules for empty property rates created some previously untested opportunities. We have successfully challenged the Valuation Office and local authorities on behalf of clients and have achieved excellent results – a small number of these are shown in the case studies on this page, but more often than not it is better not to reveal to the authorities the secrets of our successes.
Tactics available to companies who seek to avoid new empty property rates tax include the following:
- Intermittent occupation
- Charitable occupation
- Occupation prohibited by law
- Incomplete build or refurbishment
- Properties not capable of beneficial occupation
The greater financial burden from empty property rates is having a significant effect on the commercial property market. With the annual valuation date of April 2008 for the 2010 rating revaluation coinciding with the changes to empty property rates, the greater burden on owners and the effects on the market ought to be reflected in the rating revaluation 2010 assessments – but Valuation Officers do not seem to have adequately refelected this and we are mounting challenges for clients.
Rating revaluation 2010 >>
Rates payment management services >>
Business rate supplements >>
|
|