US commercial vacancies tax - is there a UK equivalent?

[JamesBentleySPR]

Hello

I work in PR and have a number of clients. One of them is a global indirect tax solutions provider.

Their US arm has put together an article about US commercial vacancies tax and how the fall in real estate taxes since the pandemic has led to increases in sales taxes.

Is anything like this happening in the UK?

[JamesBentleySPR]

Just wanted to refresh this request, thanks. Please let me know if any aspect of it is unclear, thanks.

James

[bd6759]

In the UK, the response to the pandemic’s impact on the economy has been multifaceted, involving various tax and policy changes. However, there hasn’t been a direct correlation between a fall in real estate taxes leading to an increase in sales taxes as seen in the US. Here are some key points regarding the UK’s situation:
Job Vacancies: The UK experienced a rise in job vacancies, especially in sectors like hospitality and retail, surpassing pre-pandemic levels

1.
Retail Vacancies: There has been an increase in retail vacancies, which has affected high streets and led to transformations of empty retail units

2.
Real Estate Tax Changes: The UK government introduced a temporary property transaction tax holiday to stimulate the housing market, which saw a sharp rise in house price growth and transactions

3.
Corporation Tax: The UK’s corporation tax is set to increase from 19% to 25% by 2023, which is a significant policy change aimed at boosting tax revenue

4.
Sales Tax (VAT): The Value Added Tax (VAT) for the hospitality sector was temporarily reduced to support businesses during the pandemic, with plans to return it to the standard rate of 20%

These measures reflect the UK’s approach to managing the economic impact of the pandemic, focusing on supporting businesses and stimulating certain sectors rather than a direct shift from real estate to sales tax revenue.

[JamesBentleySPR]

Thank you, this is really helpful.