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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 Ł117,000.
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
Ł1bn 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.
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