Amazon’s UK tax bill could rise by £29 million in 2023 as a result of changes to business rates.
According to Altus Group’s analysis, the online giant is among the companies experiencing the greatest business growth.
The group’s research shows, one of Amazon’s delivery stations in Longtown, Cumbria, will see a 145 percent increase in its rateable value, which is used to calculate what is owed in business rates.
Following the Chancellor’s measures earlier this month, large warehouses are set to pay an average of 27 percent more in rates.
The government’s overhaul of the business rates system, which will revalue over 500,000 retail properties in England and Wales, will give brick-and-mortar retailers more support.
The new rateable values will be determined by the property values as of April 1, 2021.
This means online retailers, who were deemed the winners of the pandemic face a tax increase.
However, stores that struggled could see their rates reduced.
Following the revaluation, department stores Harrods and Selfridges could save around £15 million in rates.
But The UK Warehousing Association claims the system overhaul is unjust.
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In a letter to chancellor Jeremy Hunt, it said: “The antecedent valuation date of April 2021 is unfair: warehousing was supporting the economy during the lockdown and consequently values were disproportionately high compared to other sectors.”
Source: Retail Gazette