Owners of empty properties in Wales face a tax burden thanks to new legislation coming into effect next April.

The Welsh Assembly Government has decided to fall into line with England on the Rating (Empty Properties) Act 2007, which affects industrial, office and retail sectors. But the industrial market in Wales could be particularly hard hit, said King Sturge, with 14m sq ft of empty factory space which currently benefits from 100% business rate relief.

Susanne Thomas of King Sturge said: “Many empty factories across Wales receive rate relief. After an initial six-month period of grace this will be withdrawn and the full impact of liability will be felt in the region, which has seen a rate of closure unprecedented in modern times. However, if the factory has been empty before 1 April 2008, then the six months period of grace will run from vacation.”

At present, nothing is paid on empty offices and shops for three months, and then only half the applicable business rate after that. Now the full rate will apply after three months.