May 25, 2007—New legislation has been published in the United Kingdom that aims to encourage empty shops, offices, factory and warehouse buildings back into commercial use.
The new measures modernize business rate relief for empty properties to better incentivise the re-use, redevelopment or sale of empty commercial property.
The measure work alongside a newly introduced allowance to support the renovation of empty business premises in the UK’s most deprived communities, and proposals to extend tax reliefs on brownfield sites.
However, under the legislation, businesses that have empty commercial property will find themselves having to pay more. At present, most empty commercial property receives a 100% relief from taxation for the first three months, and 50% thereafter; and empty warehouses and factories receive a permanent exemption from rates.
Starting in April 2008, empty commercial property will be liable for the full business rate after an initial rate-free period of three months, or six months for factories and warehouses.
Full details of the new legislation can be found online.
