Chancellor suggests ‘staircase tax’ could be abolished

Chancellor Philip Hammond has suggested that the so-called 'staircase tax' could be abolished by the end of this year.

13 Oct 2017

Chancellor Philip Hammond has suggested that the so-called ‘staircase tax’ could be abolished by the end of this year.

During a Treasury Select Committee hearing, the Chancellor admitted that the tax has been putting additional stress on businesses. He told the Committee that he is ‘certainly looking at’ the legislative steps that can be taken to abolish the tax.

Termed the ‘staircase tax’, businesses with offices on multiple floors of a commercial property have been receiving separate business rates bills for each floor they occupy, provided the areas separating the offices are communal. Some firms in England and Wales have seen their business rates rise as a result.

Business rates are calculated separately in Scotland using the rateable value, which is set by a local assessor, and the ‘poundage rate’, which is set by the Scottish government.

In a recent letter to Melissa Tatton, Chief Executive of the Valuation Office Agency (VOA), Nicky Morgan, Chair of the Treasury Select Committee, labelled the sending of backdated staircase tax bills to firms as ‘unfair’.  

In response, Ms Tatton revealed that, of the 11,000 rates that had to be reviewed, 5,500 firms saw their rateable value rise as a result of the staircase tax, 4,100 experienced an increase of less than 10%, and 1,400 saw a rise of more than 10%.

The Federation of Small Businesses (FSB) had previously called for the staircase tax to be axed. The business group welcomed the Chancellor’s remarks: Mike Cherry, National Chairman of the FSB, said: ‘The staircase tax has heaped misery on thousands of small businesses that happen to occupy split workspaces.

‘The Chancellor’s words will come as welcome relief to the desperate firms who had absolutely no idea that bill hikes were coming down the line.’

Try a site search

About us

Ling Phipp was founded in 1974 and nowadays has two partners, six managers plus trainees and support staff.

We serve clients in the East Midlands and all over the UK. Our out-of-town location, with easy parking, close to the M1 junction 25 (Nottingham/Derby - A52), is very convenient.

Company details

0115 949 6838

Ling Phipp, Cliffe Hill House, 22-26 Nottingham Road, Stapleford, Nottingham NG9 8AA


© 2018 Ling Phipp. All rights reserved. We use cookies on this website, you can find more information about cookies here.

Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number 6424855. This is the firm number provided by the Institute of Chartered Accountants in England and Wales.