Empty office interior rates 'to help small firms'

Office design news from Morgan Lovell

Published on 10-12-2009

Small businesses and entrepreneurs across the UK could benefit from the chancellor's pre-Budget announcement regarding tax exemptions for commercial property.

Matthew Hopkinson, business development director at the Local Data Company, said the 12-month extension of the tax relief will provide a boost to small companies look for modern office design space in the near future.

He commented: "I would welcome the threshold of £18,000 from the point of view of enabling smaller businesses perhaps to go in and start up, or entrepreneurial people who want to try something else."

Mr Hopkinson added, however, that larger landlords may be "irritated" by the move, as it could see their properties being less competitive.

Chancellor Alistair Darling announced in the pre-Budget report yesterday (December 9th) that empty commercial properties with a rateable value below £18,000 will be exempt from business rates until 2010-11.

He noted this is an extension of the existing policy and will mean 70 per cent of all empty properties will continue to be exempt.