Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Press release: Legislation introduced to help businesses affected by unfair ‘staircase tax’

Communities Secretary Sajid Javid will today (28 March 2018) introduce legislation that will reverse the impact of a ‘staircase tax’, which has unfairly affected up to a thousand businesses.

A Supreme Court judgment saw hundreds of businesses that operate in adjoining units or rooms, but are accessed from a common corridor or staircase, receiving separate rate bills for each unit.

The ruling also saw businesses facing higher rate bills, with some paying more due to the loss of small business rate relief.

The introduction of the Bill means these firms will be able to choose to have their rates recalculated under the old single bill system and any savings due backdated.

Communities Secretary Sajid Javid said:

For years firms in adjoining units or rooms rightly received one rates bill, but this court ruling meant they faced multiple bills for operating in an office linked by a communal lift or stairs.

This was a completely unreasonable burden on businesses which this legislation will put a stop to.

We’re giving those businesses affected the option of getting their rates bills recalculated and any savings due backdated.

Subject to Parliamentary approval of the Bill, those businesses who have been directly impacted by the Supreme Court judgement can ask the Valuation Office Agency (VOA) to recalculate valuations based on previous practice.

It can then have its bill recalculated if it chooses, and backdated. This includes those firms who lost small business rate relief.

Further information

The introduction of the legislation follows a decision in the Supreme Court (Woolway v Mazars) which brought about a change the practice of the Valuation Office Agency (VOA) in assessing rateable values for businesses.

Following this ruling, businesses who occupied more than one property in a shared building received a separate rates bill for each unit. This was widely known as the ‘staircase tax’ and meant businesses in adjoining units who had previously received one rates bill, were now being subject to several bills. Some businesses were paying more overall due to the loss of small business rate relief – a discount applied to the bills of certain businesses with a lower rateable value.

This ruling overturned an established and widely understood practice where businesses occupying 2 adjoining floors or 2 rooms separated by a wall only received a single bill.

Office address and general enquiries

2 Marsham Street

London
SW1P 4DF

Media enquiries

Link: Press release: Legislation introduced to help businesses affected by unfair ‘staircase tax’
Source: Gov Press Releases