Staircase tax formally axed – Post Budget rates boost as staircase tax formally axed

The Queen has given Royal Assent to turn the bill to reverse the effects of the so-called Staircase Tax into an Act of Parliament. Thousands of firms across England will be able to request tax rebates on their business rates bills, rebates could be eligible for rates as far back as 2010.

A supreme court judgement allowed thousands of businesses to each pay their own individual business rates tax for a unit even though they operated within adjoining units, rooms or with a common corridor in between.

The Government Bill, to reverse that judgment, which was published last December, had been stuck. This was due to the Bill having to go back to the House of Commons for consideration after the amendments proposed by the House of Lords.

The legislation, reversing the effects of the Supreme Court ruling, will save firms in England £40 million a year according to the Office for Budget Responsibility.

Quotes:

Alex Probyn who is President of UK Expert Services at real estate advisor Altus Group, previously described the Government’s commitment to reverse the effects of the ‘Mazars’ ruling affecting as many as 80,000 properties as a “victory for common sense”.

Probyn said: “The Government should be applauded for listening and acting decisively to return firms to the tax position that they were in before the court ruling. Be in no doubt this is a big post Budget rates boost with the Government marking it clear that these appeals will be prioritised.”