From The BBC:
Buildings are being knocked down as businesses seek to avoid paying tax on empty properties, a government regeneration chief has warned.
In April, the government scrapped rate relief on empty industrial property such as warehouses.
The tax was aimed at landlords who kept premises empty in hope of better rents.
But John Nicholls, chief executive of the Urban Regeneration Companies, said the tax was leading to “pre-emptive demolitions” to avoid the tax bill.
“As well as the problem of pre-emptive demolitions, it’s having an effect on supply of new property,” Mr Nicholls said.
His organisation is in charge of government-funded private-public partnerships tasked with regenerating the UK’s cities.
Damaging effect
Mr Nicholls said the new levy was having a damaging effect in areas in need of regeneration.
“Projects are being shelved because of the risk of having to pay rates on the finished product if there isn’t a tenant signed up,” he said.
Malcolm Holmes, associate director at pr…
Leave a Reply