MPs call for ban on ‘box shifting’ business rates loophole

MPs have called for a business rates avoidance loophole to be closed. More than 30 MPs have urged the government to ban controversial “box shifting” methods, which allow landlords to exploit empty property relief. The scheme works by landlords putting boxes in an empty commercial property, and then saying the space is occupied for six weeks. The boxes are then removed, and the landlord gets three months of empty rates relief. Campaigners, supported by Fleur Anderson, the Labour MP for Putney, and Siân Berry, a member of the London Assembly and former co-leader of the Green Party, among others, said putting a stop to the strategy would bring England in line with legislation already passed in Scotland and Wales. The Local Government Association has estimated that, of the £8bn of empty property relief that will be granted this year, about £250m will be lost to business rates avoidance. The Treasury and the Department for Levelling Up, Housing & Communities launched a consultation into business rates avoidance last month. The “ban box-shifting” campaign, launching today, is spearheaded by Shaylesh Patel, founder of Temporary Use Aid, which works with charities and landlords to make the best use of vacant spaces. The Times (£)