Hospitals and police stations set for tax hikes in business rates overhaul


Hospitals and police stations set for tax hikes in business rates overhaul

The Government said in Wednesday's autumn Budget that it would make a raft of changes to the current regime for business rates, the tax on commercial properties, in order to ease the burden on smaller high street operators.

It said it would permanently lower the business rates multipliers for high street retail, hospitality and leisure business premises with a rateable value of less than £500,000 from 2026.

It is part of efforts from politicians to change the balance in tax payments between bricks and mortar high street firms and online competitors.

Business rates bills are calculated by multiplying the property's rateable value, an estimate of open market rent, by figures set by the Government each year.

The multiplier figures depend on the value of the property, with ratepayers paying the multiplier amount for every £1 of rateable value.

In order to provide this tax cut for some firms, the Treasury has said it will introduce a new rate on more valuable commercial properties.

Properties with a rateable value of £500,000 or more will face a new higher multiplier.

The Government said this will include the majority of large distribution warehouses used by online businesses such as Amazon.

Analysis of official Government data by Altus Group found that this new high street "levy" will apply to 1,589 large distribution warehouses.

However, it found this will also lead to higher business rates bills for a further additional 15,278 non-domestic properties too.

The analysis found that 297 NHS Hospitals will be subject to the new "levy" including major hospitals such as the Royal London Hospital, Royal Derby Hospital, Bristol's Southmead Hospital.

Additionally, 310 universities and 309 further education colleges will also face the levy as well as 10 properties used by the Metropolitan Police Service including New Scotland Yard.

Over 200 Government properties from military barracks to court buildings to prisons will also face the increase, the data showed.

It is not yet known how large the increase will be to the multiplier and therefore how large the tax increase will be for these properties and their operators.

Alex Probyn, president of property tax at Altus Group, said that the plan had been "ill-thought-out".

He added: "It is right for the Government to try and level the playing field but the consequences of this plan hasn't been properly thought through with the vast majority of the revenue that will be raised not even coming from the online giants."

Previous articleNext article

POPULAR CATEGORY

industry

6772

fun

8623

health

6751

sports

8897