The City of London Corporation will lose£5m of revenue this financial year as a result of 'constructive vandalism'...
The City of London Corporation will lose £5m of revenue this financial year as a result of 'constructive vandalism', the damage inflicted on buildings by their owners to avoid paying rates, the Financial Times reports (p6).
The practice of stripping out buildings is a response to poor letting prospects in the City. Rates on empty properties are levied at half the charge of occupied property but no rates are payable on unusable property.
In the City, where 17% of offices are empty, the rates bill for empty property is expected to be £60m this year, and nationwide about £600m is paid.
The property industry has been lobbying the government to reduce the burden of empty rates, the FT says.