According to the new survey of the London Chamber of Commerce and Industry (LCCI), 44 percent of London businesses are concerned about the forthcoming reassessment of business rates in the UK (the property tax).
Business rates are generally remeasured every five years when the government adjusts the value of the business rates to reflect changes in the real estate market. The new rates will be determined and announced on October 2016 and come into force from April 2017.
In addition, according to the changes announced in the 2016 fiscal year, the administration of the business rates will be simplified, as from 2020 a mechanism for increasing the power will be switched from the index of retail prices in the consumer price index. Greater London Authority will move towards the full retention of business rates since April 2017.
LCCI stated that among the companies that have in its structure 10 or more people, 55 percent of respondents were concerned about the forthcoming adjustments. Half of the respondents said they do not know whether they will be able to benefit from the additional business rates.
Furthermore, 42 percent of respondents said they believe that the transferred control of the new business rates in London the local government will have a positive impact on their business. 40 percent do not know whether the business rates that they pay are “fair.”
Colin Stanbridge, LCCI Chief Executive, said: “The results show that around the subject lacks clarity While LCCI welcomes the transfer of authority business tariffs and recognizes the role of businesses, they can lead to fund infrastructure that. in turn benefit their business, the Ministry of Finance is required to identify the clearly how the reforms will work in London, considering also supplemented by business rates, which at the moment is already installed”.