Christmas attractions face sharp rise in property taxes after Budget
London’s Winter Wonderland and Hamleys are set to be hit by sharp jumps in their property taxes from next year as UK Christmas attractions come under pressure from next year’s business rates overhaul.
Analysis of official figures has shown that a raft of Christmas attractions, markets and destination-led retail will face increases in business rates payments from April.
However, other major retail destinations and Christmas shopping locations, such as Harrods, will see their payments fall due to new property valuations.
In last month’s Budget, the Chancellor announced a current 40% discount for retail, hospitality and leisure businesses – which is capped at £110,000 per business – will end on March 31 next year.
This will be replaced by a new system from the next financial year, which will see rates multipliers for retail, hospitality and leisure firms set 5p lower than the standard rate with no cap in support.
The Government also launched a £3.2 billion scheme of transitional relief to cap annual rises.
However, new property valuations will be used to decide rate payments from April, with many of these updates leading to significant increases.
Calculations of Valuation Office Agency (VOA) data by global tax firm Ryan found that the land used for Winter Wonderland in Hyde Park sees its rateable value (RV) jump from £1.0m to £3.75m, up 275%, pushing its bill from £555,000 to £721,500 next year, despite a cap.
Meanwhile, Lapland UK in Ascot see its rateable value surge from £150,000 to £1.87 million.
Other major visitor destinations are also set to be affected, Camden Stables Market’s annual bill is set to rise from £699,300 to £909,090 next April after its valuation jumped by 178%.
Hamleys’ flagship toy store on Regent Street, London, will face one of the largest bill increases, rising by £449,550 next April.
However, other retailers will see their payments fall, with Waterstones’ flagship store in Piccadilly, London, set to see its bill fall by 45%, around £828,000, from next year.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, told the Press Association: “Seasonal attractions have grown significantly in popularity between valuation dates, so upward pressure on their valuations was not unexpected but the level of increases were.
“The key question is whether the figures reflect their short seasonal rental model or whether broader income indicators have influenced the outcome. For temporary attractions, getting that balance right is critical.
“Across the wider retail sector, we’re seeing extremes both geographically and by format.”
By Henry Saker-Clark, PA Deputy Business Editor