Landlords face a £100m+ extra tax bill due to lower occupancy rates.

The new empty buildings tax, which came into effect this April, will raise £150m more than originally suggested, according to a survey by NB Real Estate.

Original estimates put the likely windfall for the Treasury at £950m, but lower occupancy rates will hand the Treasury another £150m on top, reports the FT.

Vacant commercial properties not put to practical use face the tax.

'This empty rates tax was conceived when the property market was performing strongly but the downturn is heaping misery on misery,' said Andrew Warde, director of rating at NB Real Estate.

A Treasury source said it was wrong to presume it would get a windfall from rising vacancy rates, the paper reported.

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