Derrick Potter, national chairman of the UK Warehousing Association (UKWA), has criticised the government's recent moves to scrap rate relief on empty industrial property and phase-out the Industrial Buildings Allowance (IBA), claiming both are likely to prove damaging to 3PLs.
"Under the Empty Property Rate Rules, which came into effect on 1 April, empty warehouses are now liable after a six-month holiday for empty property rates at the same rate as they would pay if they were occupied,"
says Potter.
"On a typical empty 100,000ft² warehouse, the potential rates bill could reach £250,000 a year. If a third-party warehousing company loses a client, it now not only has to contend with lost revenue, but also an additional tax burden - a double whammy."
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