UK hotels face real estate tax pain
Independent hotels across the UK are already facing rising costs and uncertainty as a result of Brexit, but pressure from business rates may be the tipping point for some properties. As the March 2019 deadline to leave the EU approaches and a deal with the bloc remains elusive, the prices of imports and staffing have grown, driving down profits. Last year saw changes to the occupier-related real estate tax—otherwise known as business rates—come into effect seven years after the last revaluation. The revaluation normally occurs every five years, but was delayed to avoid disrupting the general election. Annual rate increases were capped at 42 percent, up from the 2008 cap of 12.5 percent, with the Federation of Small Businesses estimating that 36 percent of small firms expected to see their business rates increase, with investment likely to be cut as a result.
Tags : INTERNATIONAL