Large Retailers to Face Supplemental Rates
Wednesday, December 22, 2010
by
Iain McLean and Ronnie Brown
John Swinney MSP, Cabinet Secretary for Finance and Sustainable Growth in the Scottish Government, has proposed supplemental business rates for “large retailers” which it is claimed will raise an extra £30 million in revenue.
If approved by Parliament, this supplement will be introduced from 2011-2012 to those retail properties with a rateable value exceeding £750,000 on a sliding scale as follows:-
|
Rateable Value Range for Large Retailer Supplement
|
Supplement in the Pound
|
|
More than £750,000 but not
exceeding £1,000,000
|
2.5p
|
|
More than £1,000,000 but not
exceeding £1,099,999
|
5p
|
|
More than £1,099,999 but not
exceeding £1,265,000
|
10p
|
|
More than £1,265,000 but not
exceeding £2,140,000
|
12p
|
|
More than £2,140,000
|
15p
|
The proposal has been widely criticised, with the Scottish Property Federation highlighting that “Scotland risks “killing the goose that laid the golden egg”, and the Scottish Retail Consortium stating that “the decision to single out supermarkets and other large retailers for extra business rates increases is madness”.
It remains to be seen whether this controversial supplement is actually implemented, but in the current economic climate and with the bad weather affecting sales this would be a huge a blow to those larger retailers affected.
To find out more or to seek advice please speak with your usual Biggart Baillie contact or contact Iain McLean (imclean@biggartbaillie.co.uk or 0131 226 5541) or Ronnie Brown (rbrown@biggartbaillie.co.uk or 0141 228 8000).
The information contained in this article is given for general information only, reflects the current law on the date of this article, and does not constitute legal advice on any specific matter