Business properties demolished because of tax change

Date: 15th August 2008

Some landlords are already demolishing empty business premises, as the effects of recent changes to business rate relief on empty commercial property begin to be felt.

The Independent reported that one industrial landlord has already torn down a fifth of the properties in a business park in Sunderland as a result of the altered rules.

According to the paper, demolitions of business properties are likely to increase as changes to the rules about business rate relief filter down through the economy.

Previously, landlords received 50 per cent tax relief on empty properties, but this has now been scrapped.

Accountant Malcolm Holmes told the paper that the move could end up having serious implications for business.

He advised the commercial landlords about the demolition of the Sunderland units and explained: "We have undoubtedly lost some major assets not just as far as our client is concerned but also as in respect of the city of Sunderland.

"Had the other units not been available I am certain that the businesses now utilising the space would have been lost elsewhere, potentially overseas."

However, a Treasury spokesperson said to the publication: "Reforms to empty property relief are aimed at ensuring a fair balance between incentives to re-let property, and giving property owners a period of relief while they manage vacancies."