INDUSTRY NEWS

Segro: Tax will force developers to demolish

Commercial property developer Segro has claimed the government’s tax on empty commercial property is leading to increased demolition.

“Empty rates make it too costly to provide cheaper, older property. It makes more sense to demolish these buildings altogether,” Thisismoney.co.uk has reported

“Like many other property companies we are demolishing more buildings,” said Ian Coull, chief executive.

Companies now pay the same tax on empty buildings as on those they let out to tenants – previously they qualified for a 50 per cent reduction.

The legislation has prompted an early day motion by Halifax MP Linda Riordan, backed by the British Property Federation.

She said: “The removal of empty property rate relief is a tax on hardship which hit just as the property market needed a kick start. It’s an added tax burden paid for by those whose properties are not making them an income,” the Morning Advertiser has reported.ADNFCR-1329-ID-18714399-ADNFCR

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