There are serious implications for commercial investors and commercial property owners in this Bill. It is a case possibly of unintended consequencies. The Bill removes the exemption from business rates enjoyed by empty commercial property. The intention is to discourage big companies from buying up and holding empty property that might be of use to a competitor. Business rates will now become payable by the owner after a property has been empty for only 6 months.
However, many small landlords and small property companies who's business is renting property to other small businesses (short term lettings etc) will find themselves caught in this and liable to pay the business rates on their properties whilst they are empty and on the market looking for tenants.
Previously only the tenants themselves were liable to pay the business rates direct to the local authority and small landlords did not get involved much. Is this a case of the government focusing on getting the big bad guys and not realising that at the same time they are trampling on the honest little guys trying to run a legit business?
This bill has now been passed and there is a consultation period until October to sort out any problems.
If this effects you then contact your MP and get him to take up the issue. Failure to do so could cost you thousands of £'s.
Profitman