News & insight

£500m in business rates refunds set for retailers

Richard Farr / 21 May, 20

The Supreme Court has unanimously ruled that ATMs in existing shops should not be subject to separate business rates assessments, in a landmark appeal that has been lost by the Valuation Office Agency.

The decision will see local authorities issue just under £500m in refunds to retailers, including the UK’s major supermarkets, where ATMs have been treated separately to the rest of the shop.

The VOA has been classing ATMs separately since 2010, which has led to many retailers withdrawing them from their stores over the past decade.

“This is welcome news for retailers who have been penalised in rates liability for offering add on services to customers, like ATMs. It will also benefit customers where retailers had withdrawn such services to avoid the extra costs.”

Richard Farr - Partner in Rating at SW

Richard continued, “The refunds will undoubtedly be good news for the retailers, who have been widely affected during the Coronavirus outbreak. That said, £500m is a significant loss to local authorities at what is set to be a significantly difficult period for funding.”

Topics: News

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