Tax on commercial mortgage holders 'stems growth

23 March 2011

Written by Gavin Elley

Taxing commercial mortgage holders with empty properties should be scrapped, since the practice could "scupper many firms' ability to grow".

This is according to Liz Peace, chief executive of the British Property Federation, who made this observation in response to the publication of an independent report from the TaxPayers' Alliance calling for the government to stop charging full rates on vacant business premises.

Describing the current system as the "enemy of enterprise", Ms Peace urged ministers to consider revising the process in today's (March 23rd) Budget.

"It is now clear that charging empty property rates is an unfair burden on taxpayers that is restricting economic growth," she went on to say, adding that it has led to the demolition of "usable business space".

According to the Federation of Small Businesses, smaller firms with empty properties could be forced to pay thousands of extra pounds in rates, thanks to exemption changes due to come in later this year.

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