The British Property Federation (BPF) have launched a stinging rebuke to the Government''s plans for drastically cutting rates relief on vacant properties which came in on 1^st April, suggesting that the Government were “deluding” themselves if they thought scrapping the relief would bring empty properties into use and describing the cut as a £3 billion kick in the teeth for the business community.

Andrew Kilpatrick, Partner of Thompsons agreed with the British Property Federation''s views and says, “Businesses in and around the Swindon area are getting an unpleasant shock when receiving bills for vacant properties from local authorities. Many people are still under the misapprehension that the 3 months rates free period for shops and offices and 6 months rates free period for industrial buildings is calculated from 1^st April 2008, but unfortunately it isn''t as the Government''s new rules are retrospective and the rates free period is calculated from the date the building first became vacant. Hence, if you have had an industrial building vacant for a year, which unfortunately is not unknown, then you will have already used up your 6 months rates free void allowance and full rates will become payable from 1^st April 2008.”

A joint letter has been sent to the Chancellor of the Exchequer from the British Property Federation, Royal Institution of Chartered Surveyors & Confederation of Bristish Industry, arguing that the “tax grabbing plans” could severely damage regeneration and business. The BPF wants the Government to delay the policy while further consultations are carried out or reduce the empty property rates charge from 100% to 50% as it has the power to do so under the Rating (Empty Properties) Act 2007.

Andrew Kilpatrick of Thompsons says, “Whilst continuing pressure from the property industry on this matter is laudable and to be supported, my personal view is that the Government''s need for extra tax revenue is so desperate (and the Treasury''s forecast is for the empty property rates charge to produce some £950 million in 2008/09) that I would not advise anyone to hold their breath on any Government concessions. In my view, the Government''s “so what” attitude to increasing tax burdens is likely to prevail and to hell with the consequences to the economy and the property sector, which once again is being viewed as a soft touch for extra taxes.”

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