Firms back campaign to scrap empty property tax

Several of the UK’s leading companies have pledged their support to a campaign urging the Government to abolish the tax levied on empty business properties.

Firms such as British Airways, Tesco and Nokia have thrown their weight behind the rates battle, which is being led by the British Property Federation (BPF).

In an open letter to Gordon Brown, the BPF called for the tax to be suspended to help businesses weather the current downturn.

‘Taxing hardship and business failure is a ludicrous way to help people through the hard times,’ said the BPF’s Chief Executive, Liz Peace Brown. ‘Brown must act now to undo this mess.’

The organisation, which has dubbed the charge ‘bombsite Britain tax’, claims firms are opting to demolish vacant buildings rather than pay the fee. It also urged the Prime Minister to reinstate business rate relief, which was scrapped earlier this year.

Following the rates reforms in April, offices and shops must pay 50% of the taxes on empty buildings for the first three months, and subsequently must pay the full amount. Industrial properties, meanwhile, are required to pay 50% for the first six months, followed by the full amount.

‘The reforms to empty property relief are aimed at ensuring a fairer balance between incentives to re-let property, and giving property owners a period of relief while they manage vacancies,’ said a Treasury spokesman. ‘As with all taxes we will keep the position under review.’