Landlords demolish buildings after government scraps rate relief

Posted under General by Michael

Some of the UK’s landlords, frustrated due to Government’s withdrawal of business rate relief on vacant commercial properties, are resorting to demolition of buildings to minimise financial losses.

The industrial landlord O&H Q7 demolished its fifth Alexandra Business Park, Sunderland, this week. It also ordered further demolition of 37,000ft of its 750,000ft park.

Landlords are now required to pay full business rates on unoccupied office and retail property, while they were previously entitled to 50% tax relief on such properties. Landlords of industrial properties have been hit more severely by the abolition of relief. They were entitled to full exemption previously, but would now be paying full tax for the vacant industrial space.

The British Property Federation is aggressively campaigning against the abolition. It is joined by the other bodies including SSA, CBI, British Chamber of Commerce and British Retail Consortium.

Linda Riordan, Labour MP for Halifax, with the backing of 35 MPs, would be tabling a motion for reintroduction of relief as per the Rating Act 2007.

As a mark of protest against abolition of business rate relief, Vanguard Holdings demolished its empty pub in west London and hoisted a sign which read:

“Sorry Mr. Brown - no empty rates on this one.”

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