// Amazon’s UK tax bill is set to increase following the overhaul of the business rates system announced in the autumn statement this month
// Bricks-and-mortar retailers could see a reduction in rates, with Harrods and Selfridges set to see a combined saving around £15 million
Amazon’s UK tax bill could increase by £29m next year following the changes to business rates introduced in the autumn statement that will hit those that operate warehouses.
The online giant is among the businesses facing the biggest business rises, according to analysis from property advisory firm Altus Group.
One of Amazon’s delivery stations in Longtown in Cumbria will face a 145% surge in its rateable value, which are used to calculate what is owed in business rates, Altus told The Guardian.
Big warehouses are set to pay an average of 27% more in rates following the measures introduced by the Chancellor earlier this month.
Meanwhile, bricks-and-mortar retailers will receive greater support in the government’s shake up of the business rates system, which will see it revalue more than 500,000 retail properties in England and Wales.
The new rateable values will be based on property values as of 1 April 2021.
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This means that the online retailers, which were deemed the winners of the pandemic will face a tax rise, while stores, which struggled over the same period, could see a reduction in rates.
Department stores Harrods and Selfridges could save around £15 million in rates following the revaluation.
However, the UK Warehousing Association claims the system overhaul is unfair.
In a letter to chancellor Jeremy Hunt, it said: “The antecedent valuation date of April 2021 is unfair: warehousing was supporting the economy during lockdown and consequently values were disproportionately high compared to other sectors.”
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