UK supermarkets are to receive a significant tax reduction following the renewed business rates.
The government has released figures showing that the Big 4 could receive a £173 million tax reduction on their larger stores.
On April 1 2017 the business rates revaluation will come into force, and the rateable values of Sainsbury‘s, Tesco, Morrisons and Asda stores will see a welcome reduction as the ongoing price war between the Big 4 continues.
On average, big brand superstores across England and Wales will see rateable values fall by 5.9 per cent, roughly £79,368.
Figures from the CVS reveal that this year the collective revaluations of supermarkets totals £2.76 billion, down from £2.93 billion in 2010.
A proposed “transitional relief” scheme, designed to limit any major changes to rates, could see the business rates capped at 4.1 per cent.
“With the loss of market share and the proliferation of new stores by the discounters, undoubtedly, this will be good news,” CVS chief executive Mark Rigby said.
“However, the government‘s proposals for transitional rates relief mean that those businesses expecting lower bills will only get those savings gradually – so firms will have to wait even longer for their long-awaited relief.”