THOUSANDS of business owners should soon be able to claim substantial rate rebates from their local authorities, says commercial property agent Prop-Search, as legislation to revoke the so-called staircase tax moves closer to being approved.
Under staircase tax rules, companies operating over several floors within the same property are handed separate business rates assessments for each occupied floor – provided that the floors are separated by communal spaces including staircases, corridors and elevators – as opposed to one bill for the entire premises.
The tax was initially introduced after a landmark Supreme Court ruling – Woolway v Mazars – in August 2017 and backdated to 2015, which resulted in businesses facing higher rate bills, with some paying even more due to the loss of small business rate relief. It is proposed that the new legislation will allow affected firms to have their rates recalculated under the old single bill system, with any savings due backdated.
Samantha Jones, an Associate Director at Prop-Search, said: “Chancellor Philip Hammond first signalled the abolition of the levy in his Autumn Budget announcement last year, having reportedly ‘listened’ to the concerns of small business owners. Fast-forward to the present day and progress is being made. The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill received its third reading during the summer in the House of Lords and now awaits Royal Assent.
“The provisions the Bill mean firms will be able to choose to have their rates recalculated under the old single bill system and any savings due backdated. This will allow a common-sense approach to valuation to finally prevail and allow separate units occupied by the same occupier to be considered as a single unit, even where they are only accessible by a communal area.”
If you think this change will affect your business, stay vigilant for the new rules taking effect and act quickly to get a refund of overpaid rates. Further information or advice can be obtained from Prop-Search on 01933 223300 or 01604 492000 or at the website www.prop-search.com