The Institute of Commercial Business Agents - General Letting - UK

Date: 01 Apr 2008

The Institute of Commercial Business Agents (ICBA) is angry about the stealth tax the government is imposing on commercial landlords - due to come in tomorrow. From 1st April 2008 commercial properties empty for more than 3 months will no longer receive relief from rates. This rises to 6 months for industrial properties.

Charles Smailes, chairman of the National Federation of Property Professionals who heads up the ICBA said:

"We are angry because we feel that the industry's concerns were not taken into account during the consultation period - this is just another stealth tax on business. It's also completely ludicrous to suggest that commercial or industrial property owners would knowingly leave their premises vacant. There isn't an owner out there that wouldn't rent or sell their property if they could. Keeping commercial premises vacant is simply just not cost-effective.

"My fear is that owners will simply try and find the loopholes, one of which is an exemption if the property is not fit to rent or occupy. This could lead to people making their premises unfit on a temporary basis if they can't find tenants. How is this going to look in our city and town centres? The government has really not thought this through."

Avenir Properties is a commercial and residential developer within the Yorkshire region. Director Andrew Carnell, said:

"It is simply another tax on hard-working businesses. We would never choose to leave our commercial property empty but there are times when it just happens. That's business! Being taxed on the property simply makes our overheads higher, a cost which has to be passed on to the customer eventually. In the current climate where lending criteria are getting tighter and tighter it just doesn't make sense to land us with another tax. It's just going to make a tough time even tougher for everyone in our business."

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