Relief From Empty Rates

Makro Properties Limited and Another v Nuneaton and Bedworth Borough Council [2012] This landmark High Court ruling at the end of June will provide comfort to landlords and occupiers using empty rates avoidance tactics.

Cash and Carry chain Makro used 0.2% of the floor space of its property in Coventry to store sixteen pallets of documents between November 2009 and January 2010. This was sufficient for Makro to qualify for six months empty rates grace period once the pallets had been removed, saving Makro £117,000.

Following calls for the Government to scrap empty property rates, Chancellor George Osborne has asked MP Julian Sturdy to consider how the empty rates legislation can be updated. In the meantime, the Government will continue to hand out around £1bn a year in empty property rates relief as a result of avoidance tactics such as those used by Makro which have been legitimised by this High Court ruling.