Commercial property tax relief to benefit smaller businesses

Commercial property tax relief to benefit smaller businesses




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The government's decision to extend the empty property tax relief for lower-tier commercial property will give a boost to smaller companies, according to an expert.

Retail and leisure data firm the Local Data Company has stated that Alistair Darling's decision to continue the tax exemption for properties with a rateable value below £18,000 will be a boon to start-firms.

According to the chancellor's calculations, this means that around 70 per cent of all empty commercial properties in the UK will be exempt from the tax.

Matthew Hopkinson, business development director for the data expert, predicted that entrepreneurial companies looking to “try something else” will also benefit from the extension of the scheme, which will now run until 2010-11.

Despite this, he warned that the risk of insolvency will be a very real threat for many firms over the course of the coming months, adding that companies may not experience “the Christmas trading that they expected to have, or that they were hoping to be saved by.”

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