Reduction in empty rates relief – a blow to landlords and owners of commercial property.

Home / Commercial Property / Reduction in empty rates relief – a blow to landlords and owners of commercial property.
This week has seen a further increase in the tax burden on landlords and Small businesses who own commercial property.  In a further drive to raise revenue by central government, the threshold at which an empty property is liable for full rates has dropped from £18,000 to £2600. This effectively means that many owners of  commercial properties will become liable for huge payments even if their properties are generating a nil income. Richard Priestley, MD of Exeid the boutique commercial property consultancy said “this change is nuts. It would be like taxing PAYE and NI to an employee who was out of work with no income. It makes no logical sense at all.” It is thought that the move will result in a further destabilisation of the commercial property market which is already skating along on thin ice.  Richard went on to say “there are a huge number of landlords who have had their properties repossessed in this recent downturn although the professionals in the market dont like to speak about it. Many of Nottingham’s Landmark commercial  properties are already  in the hands of the receivers and this move will now drive more in that direction”. In order to help landlords are launching a rates mitigation service where we place clients on short term licences in locations where the effect of the rates would otherwise really hurt. This enables a “tenant” to get space on a shorter more flexible term than would otherwise be available whilst helping the landlords weather the storm and fully mitigate this rates bombshell. Richard would be delighted to speak with any property owners who would like to mitigate their rates liability   as soon as possible. Please call 0115 9477575 for more information or email him by clicking here

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