WD + Co Autumn Budget Summary 2021 - Flipbook - Page 11
Online Sales Tax
The government has announced its plans to consult
and explore the arguments for and against the
introduction of an ‘Online Sales Tax’.
Should such a tax be introduced in future, it would
raise revenue to fund business rates reductions.
Business rates review
Business rates have been devolved to Scotland,
Northern Ireland and Wales.
The government announced at Budget 2020 that it
would conduct a fundamental review of the business
rates system in England. The government’s objectives
for the review were reducing the overall burden on
business, improving the current business rates system
and allowing the consideration of more fundamental
changes in the long term.
In March 2021, the government published the Interim
Report of the review. The Final Report was published
on 27 October 2021. Collectively, these set out the
government’s commitments by:
• Cutting the burden of business rates for all
businesses by freezing the multiplier for 2022 to
• Introducing a new relief to support investment
in property improvements, enabling occupying
businesses to invest in expanding their properties
and making them work better for customers
• Introducing new measures to support green
investment and the decarbonisation of nondomestic buildings. This will provide exemptions
for eligible green plant and machinery such as solar
panels, wind turbines and battery storage used with
renewables and electric vehicle charging points, as
well as a 100% relief for low-carbon heat networks
that have their own rates bill.
• Making the system fairer by moving to three-yearly
revaluations from 2023.
• Providing stability ahead of the 2023 revaluation by
extending Transitional Relief and the Supporting
Small Business Scheme for 2022 to 2023 to protect
small businesses from significant bill increases in
the final year of the current revaluation cycle.
• Supporting local high streets as they adapt and
recover from the pandemic by introducing a new
temporary business rates relief in England for
eligible retail, hospitality and leisure properties
for 2022/23. Over 90% of retail, hospitality and
leisure businesses will receive at least 50% off their
business rates bills in 2022/23. This amounts to
support worth more than double the relief that was
announced pre-COVID for the 2020 to 2021 financial
year and includes additional businesses such as
hotels, gyms and bowling alleys.