Government’s reform of the Empty Property Relief in business rates has been enacted in England and Wales through the Rating (Empty Properties) Act 2007 and secondary legislation with effect from 1 April 2008.  

There appear to be no plans to change empty property relief in Scotland and Northern Ireland has not yet published any parallel amendments. 

The purpose of these reforms is to modernise relief from business rates for empty property by applying the full business rate to business properties which have been empty for three to six months according to property type: 

• Increasing incentives for empty property to be re-let or for the property and site to be re-developed, thereby reducing rents and prices for new and existing businesses
• Harmonising incentives for the efficient use of property in use with incentives for the use of empty stock
• Reducing the need for greenfield commercial development and increasing opportunities for re-development of brownfield land for business and housing purposes
• Removing distortions in the tax treatment of different forms of commercial property
• Raising revenue in the most efficient and simple way.

Criticism of these measures from the market and the professional bodies has been intense. 

This hot topic brings together links to the legislation and commentary on this important policy initiative.

A full list of hot topics is also available.