Healey Unveils High Street Business Rates Overhaul
Gambling tax hikes and online sales crackdown to fund relief for 110,000 retail and leisure firms.
Carla Rooney
Chancellor John Healey announced plans to increase business rates support for high street businesses.
The duty on gambling machine games with stakes over £1 will climb from 20% to 25%, effective April next year. This increase, coupled with a focused effort against illicit online sales, will partially finance the new support package.
Separately, the threshold for 100% small business rates relief for retail and hospitality firms will rise from £12,000 to £18,000. An additional 70,000 firms will not pay business rates under the new scheme.
Online marketplaces will become responsible for collecting VAT on sales by UK businesses exceeding £90,000 through their platforms, starting October next year. This move directly addresses existing loopholes in online taxation.
Some foreign firms use shell companies to bypass rules requiring online marketplaces to collect VAT on sales made by overseas businesses to UK customers. The Government claims these tactics allowed some businesses to circumvent existing regulations.
The total package of measures ensures half of all retail and leisure firms in England will not pay business rates. Around 110,000 firms expect their property tax bills to fall next year.
Stella David commented on the broader impact. She stated, "The previous gambling tax increases announced in November last year have already had detrimental consequences across the industry, with the effects being felt by employees, communities as well as customers."
David further warned, "These additional tax changes will further compound that damage and push more people into the growing illegal market."
These additional tax changes will further compound that damage and push more people into the growing illegal market.