Some Relief from Empty Rates

01/12/2008

The Chancellor, Alistair Darling, has announced that the increasingly controversial and unpopular full charge of rates on empty properties will be dropped for those properties having a rateable value of £15,000 or less for 12 months from 1 April 2009.

“Chambers of Commerce, other business organisations and even Labour MPs have been lobbying hard for this tax to be abolished so the Government has listened and undoubtedly this is a step in the right direction”, says Mark Bunting, Group Director of Aitchison Raffety.

“Whilst the Chancellor claims 70% of empty properties will benefit from this suspension it is very doubtful that this is 70% of the total revenue and probably only a small percentage. Furthermore, the relief is likely to be significantly less in the south east where property values are generally higher. Whilst it is easy for the Chancellor to dismiss higher value properties which are owned by larger companies & institutions it should be borne in mind that these are the institutions upon which many ordinary people depend to pay their pensions.”

The Government has stated that the relief will be removed after 12 months as it is necessary to encourage re-use and re-letting of premises. “Aitchison Raffety deals with the letting and sales of properties on a day to day basis and none of our clients willingly keep property empty either in this or any other market – it simply doesn’t happen” says Bunting.

“It must be remembered that the previous situation saw a reasonable rates burden on empty properties after a longer period of time and at a lower level. Why it was thought necessary, other than as a revenue raising exercise, to increase this is a mystery”.

Aitchison Raffety has a significant UK-wide rating division and has devised a number of strategies to assist those affected by empty rates and such parties are encouraged to contact their local branch of Aitchison Raffety or via the web at www.argroup.co.uk