The End of Empty Property Rates Relief?

This week's Budget announced the Government's intention to adopt a number of the recommendations by the Lyons Report published earlier this week on the funding of Local Government.

• The recommendations have now been adopted as Government policy.
• A change which could have a significant impact is the intention to remove empty property rates relief in England from 1 April 2008.
• The proposal is to remove the current 100% empty property rates relief for industrial properties, and replacing the 50% empty rates levy on Offices, shops etc with full rates liability.
• The proposal would witness, empty Industrial properties liable for full rates following 100% relief for the first 6 months.
• Empty offices & retail properties would continue to get 100% relief for the first 3 months, thereafter the 50% relief would be withdrawn, with full rates liable.
  

Legislation will be required before the changes will be implemented.

Will Scotland avoid these proposed changes?

To date, the Scottish Executive has announced that although aware of the Lyons Report and Westminster's proposals at present, they are not intending to implement the changes. This could change after the Scottish Parliamentary elections in May, although following the reintroduction of harmonising the Rate Poundage with England this year by the Scottish Executive, unless there is the political will, it is difficult to see a different policy for empty property applying in Scotland if introduced in England.

View the full Lyons Report

View the summarised Version

For further advice contact:-

Ken McCormack/Tom Davidson - Business Rates

Eric Forgie/Yan Stewart - Agency

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