During the recent budget it was announced that business rates were to be increased, now many W1 business owners are bracing themselves for a sharp increase.
With effect from April 1st the rates were due to rise as much as 20 per cent, meaning that the bottom line property costs for businesses with office space in London could be significantly impacted.
For those with office space in W1 it means that they will have had to deal with 40 per cent tax rises since 2010.
Stewart Smith, Executive Director in CBRE’s Central London Tenant Advisory Group, warns that the rates increase may be a decisive factor in occupiers relocating from W1, he said: “Many occupiers in London’s W1 will struggle to absorb these costs. This hike in rates, with the prospect of further increases over the next few years, may be the tipping point for media companies and professional services firms that are already considering cheaper alternatives to W1.”
The next valuation is not due to take place until 2015, so those businesses will have to struggle with these rates until then.
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