Supermarkets set for £550m tax reduction
Over half a million retail properties across England and Wales have been revalued due to a business rates shake-up.
The new rateable values will be the basis of business rates from April 1st, 2023, until March 31st, 2026, after complaints from companies that the previous rates were outdated.
This assessment will see supermarkets in England and Wales having their tax cut by almost £550m over a three-year period.
Larger supermarkets are estimated to see a drop in their rateable values from £2.86b to £2.43b in 2024 according to analysis from commercial property advisory firm, Altus Group.
However, smaller grocers and convenience stores have seen an increase in their valuations, including Aldi and Lidl. This could see taxes increase by £140.76m over the three-year cycle.
Robert Hayton, UK president of Altus, said: “This was a market correction within the sector. The biggest surprise is the modest reduction overall for over 400,000 ordinary shops which is difficult to square with the collapse in demand for new leases around the valuation date and the immediate aftermath of pandemic restrictions.”