Retailers across London are due to receive a cash rebate of over £60 million following a recent landmark court ruling that found retailers weren’t liable for business rates on cash machines.
According to figures collated for City AM by real estate advisor Altus Group, more than 2300 supermarkets, petrol stations and smaller shops across 32 London boroughs are due for a lump sum from local councils.
The total rebate bill which has been built up over eight years is reportedly worth £61.6 million.
Earlier this month, the Court of Appeal delivered a judgement in favour of retailers seeking to avoid ATM sites being treated as separate property units for business rates purposes.
The court’s decision, handed down today, concludes the long-running £400 million legal dispute that was brought by some of the UK’s biggest grocers, including Sainsbury’s, Tesco and the Co-op.
“This landmark ruling and the tax rebates that will flow from it will have massive implications for councils and their budgets under business rate retention which could potentially impact upon local services,” Altus Group head of UK business rates Robert Hayton said.
The average business rates bill for an ATM was £2888 this year, but can be as much as £21,600.