Government urged to review rate relief on empty properties

The Government has been urged to review its decision to end rate relief on empty properties because it is putting developers off building new properties, reports thisisleicestershire.co.uk.

Responding to calls to help businesses ride through the economic squeeze, the chief executive of the East Midlands Development Agency, Jeff Moore, called for a review of the move, saying it in effect created an empty buildings tax.

He said: "We believe the Bank of England's £50 billion special liquidity could have better impact, that the 'empty rate tax' should be reviewed to help stimulate recovery and confidence in the property market."

He also called on the government to raise the threshold for stamp duty, which would greatly benefit first-time property buyers, and called for more funding.

Such funding, he pointed out, could be invested by the businesses in improving their efficiency.

Tax reforms are increasingly becoming an issue for many businesses in the UK.

A recent survey of tax professionals revealed that many wanted small businesses to be given tax breaks through reduction in corporation tax, according to the Press Association.