Amazon's UK tax bill could jump as much as £29m
By Iain Gilbert
Date: Monday 28 Nov 2022
(Sharecast News) - Retail giant Amazon could see its tax bill jump by as much as £29.0m in 2023 due to changes to business rates scheduled to come into effect across the UK.
Amazon will likely be among a number of firms set to face marked tax rises following chancellor Jeremy Hunt's autumn statement, according to Altus Group, while flagship department stores and hotels may be able to shave millions off their tax bills as bricks-and-mortar retailers receive increased support.
New rateable values, used to calculate business rates tax, will come into effect from 1 April, with pandemic winners, such as online retailers, set to experience a rise in tax rates, while "losers", like physical stores, may see taxes fall.
Amazon's delivery warehouse in Longtown, Cumbria will see its rateable value surge by 145%, according to Altus, with its overall business rates on track to rise as much as £28.75m in 2023 and cost the firm approximately £100.0m in extra tax over the next three years.
Altus also warned that smaller occupiers of industrial buildings and warehouses were at risk of financial collapse as heightened tax rises pile on top of already soaring costs.
Altus president Robert Hayton, said: "Most industrial buildings aren't big sheds occupied by online retailers but house economy incubators, startups, and employment-supporting manufacturers.
"It feels like the valuers of the new draft lists have deployed a one-size-fits-all approach, and this could be hugely damaging."
Hayton added that "market distortion" following the Covid-19 pandemic was also likely to result in hardship for many already-struggling businesses across Britain.
Reporting by Iain Gilbert at Sharecast.com
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