News

2011-03-11 : Changes to Empty Business Rate Tax cause growing concern

From April this year, the government plans to make a major change to empty business rate tax.

Currently, any property with a rateable value of £18000 and below, does not have to pay the empty rates levy, which taxes buildings that have been empty for more than three months.

From 1^st April, any property with a rateable value over £2,600 after the exemption period ends, will be liable for the full business rate bill.

Many businesses will be affected by this change. Hundreds of farmers and landowners who have diversified into commercial lets will be hit with large bills due to loss of tenants.

Owners of empty pubs will receive higher business rate bills for their property than if the pub was open, especially as the government will also not be re introducing the 50% relief.

It is estimated that this new change will provide an extra income of £400 million a year for the government, but many industry bodies feel it will hinder the development of small business growth.

Alongside the empty rate change, the government proposes to help small businesses by providing a twelve month rate holiday for eligible companies that occupy a property with a rateable value of less than £6000. This may not be enough to save the already struggling companies from closure.