Incentives Announced for Commercial Building Construction
A new empty property rate relief for newly built commercial buildings that comes into force next month will help to boost development, the Government believes. Chancellor George Osborne announced the discount in his Autumn Statement as part of an effort to lift the burden on developers when they are faced with rates to pay on unoccupied buildings.
Confidence Boost for Commercial Property Sector
Local Government Minister Brandon Lewis said this week:
"This move will boost confidence in the commercial property sector and allow them to develop new projects again without worrying about the risk of rate bills on empty buildings whilst they find a buyer."
The new incentive, worth an estimated £150 million, could apply to over 11,000 new commercial properties including offices, warehouses and factories. Firms thinking of applying for the relief to start up a new project are urged to speak to commercial property solicitors.
Guidance has been published this week setting out detailed eligibility criteria in a bid to help local authorities and businesses successfully use the discount. The move follows other Government measures aimed at easing the business rate liabilities faced by companies, with 500,000 properties benefiting from the doubling of small business rate relief for three years.
Small firms in the UK also benefit from what is the lowest corporation tax of all G20 countries and from the first 20 employees being exempt from national insurance contributions.
IBB has one of the largest real estate groups in West London and the South East, with expertise in commercial development, residential development, real estate finance, real estate investment and management, construction and real estate dispute resolution. Contact our commercial property lawyers in London by calling us on 08456 381381 or emailing CRE@ibblaw.co.uk.