The Treasury has ruled out hitting the owners of dilapidated buildings with extra taxes.
Minister Dr Alex Allinson said this would be contrary to the government’s Tax Strategy.
The decision follows a consultation on addressing issues associated with empty properties that considered rates exemptions removals.
Dr Allinson stated: “At the same time, the Income Tax Division of Treasury looked into possible tax measures that could be introduced in relation to empty/problem properties; however it was decided that these options would not be actively progressed at this time.
“This is on the grounds that said tax treatment would constitute a tax on capital assets, which could be contrary to the published Tax Strategy 2024-26.”
Alternatives
Instead, the Treasury is said to be exploring alternative action.
Dr Allinson said: “Treasury are now engaging with the Attorney General Chambers to establish whether this could be achieved another way, for example by the introduction of a levy.”
This forms part of a wider review of rates legislation.
A public consultation is scheduled for September on areas including the “Removal of rates exemptions (for dangerous or ruinous buildings)”.
4 Comments