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Newsletter 42
Landlords ‘demolishing warehouses to save tax’
A recent move by the UK Government to scrap rate relief on empty industrial property could tempt some landlords to demolish empty warehouse facilities and other industrial property, according to the United Kingdom Warehousing Association. The organisation fears they will take this route as a way of avoiding paying the substantial amounts of tax that unoccupied sites now incur. These came into force with the Empty Property Rate Rules in April this year. UKWA cites several examples of landlords that have already started demolishing premises, possibly for this reason, including companies in Sunderland and London, and says it is keen to hear from more. The organisation notes that Linda Riordan, Labour MP for Halifax, has received the support of 35 MPs for the tabling of an early day motion to reintroduce empty property tax relief, but thinks it unlikely that this will actually be debated.
As a measure of the saving that landlords will perceive, UKWA says that on a typical empty 10,000 sq m warehouse, the potential rates bill could reach £260,000 a year.
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