Empty Property Rate Relief to Boost Construction
16 September 2013
Construction businesses are set to benefit from a new empty property buildings relief which is due to start next month, applying to commercial buildings completed between 1 October 2013 and 30 September 2016.The relief - which is estimated to be worth £150m, and due to benefit more than 11,000 new commercial properties including offices, factories and warehouses not occupied in the first 18 months after construction.
The discount had been announced by the Chancellor in his Autumn Statement to encourage development by reducing the business rates liability of owners of unoccupied new buildings.
In addition, the Treasury has published guidance which sets out the detailed criteria and eligibility for this additional relief for empty new builds to assist local authorities and businesses understand and successfully use the discount.
The new relief comes in addition to another relief – that of doubling small business rate relief for three years benefiting half a million properties – which together seek to help companies with their business rate liabilities.
It is hoped these moves will boost confidence in the commercial property sector and allow construction companies to develop new projects.