From Property Week:
Alistair Darling, chancellor of the exchequer, has scrapped empty property rates* for properties with an estimated value of less than £250,000 ... Martin Davenport, rating partner at Hartnell Taylor Cook, said: "It will help small businesses ...
Of course! Let's not forget those thousands of small businesses occupying empty business premises the length and breadth of the land ... er ...
* Of course taxing the value of empty buildings in themselves is counter-productive, because at the margin, landlords will demolish empty buildings in order to reduce supply and hence put a floor under rents that they can charge for the occupied properties. This problem would be solved at a stroke if it were only the site value that were taxed, whether there are building on it or not.
A simple solution
52 minutes ago
4 comments:
It is known whether there is any connection between the taxation of empty business premises and their demolition?
An owner who has an empty building will want to rent it out if he can or sell it if that is a better deal for him. Demolishing it is a costly business, particularly if there is any risk of hazardous waste like asbestos being present; and once demolished what can he do? Spend even more building something else or sell a vacant plot and leave the purchaser with the headache of dealing with the local planners and building control department - surely factors which would affect the price adversely.
It doesn't seem very likely to me that demolition would be a favourable option because the cost involved seems out of all proportion to any amount of tax saved. I might be wrong. As you know, I usually am.
TFB, the property people greatly exaggerate this (i.e. use it as a threat), but there are indeed marginal situations (metal sheds on industrial parks in desirable areas) where it is worth while razing them, or at least tearing the roof off, or something.
It's amazing that we have a government that loves the idea of taxation as incentive and then can't seem to get its head round this one.
I don't see how you can get the value of something, except by asking "what would you sell it for?" and taxing that number.
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