The Courier & Advertiser (Angus and Dundee)
Shooting estates tax move puts north-east firms in danger, claims MSP.
North-east: Claims estates could fold after reintroduction of sporting rates
Small businesses who rely on tax breaks at north-east shooting estates are in danger of being forced out of business by the SNP tax regime, a politician has claimed.
North East Conservative MSP Liam Kerr lashed out against sporting rates reintroduced by the Scottish Government this year, after they were abolished in the 1990s.
Mr Kerr said he had been contacted by a constituent, who wished to remain anonymous.
The constituent said: “It will be the people who work on the land, and not the landowners or estates themselves, who will suffer under SNP plans to charge up to £3 per acre of land which has potential for deer and bird hunting.”
It is understood that more than 10,000 valuation notices have so far been issued and half of those may attract appeals – with around 8,000 more notices set to be issued next month.
Mr Kerr said the move has already caused concern for small business owners connected to rural sports.
He said: “I have been told that even the assessors admit the tax will cost more to administer than it will raise. And the Government itself will be one of the biggest payers.
“One prediction is that the Forestry Commission will contribute in excess of £1 million or 25% of the scheme’s likely gross income.
“In Angus, one employer told me his small business has closed with two full-time and 20 casual jobs gone, not to mention the wider economic impact of clients booking hotels, eating out and so on.
“I was told foreign parties who came to Angus are now looking at Argentina among other countries. Is this really the message the SNP wants to send out – that we are closed for business?
“The introduction of sporting rates was definitely not progressive.”
A Scottish Government spokesperson said: “The Land Reform Act ensures fairness for all taxpayers by ending an exemption, introduced by the UK Government in 1995, which meant major landowners no longer had to pay non-domestic rates for shooting rights and deer forests.
“The new rates liabilities are fair and sustainable, with many of the smaller shoots benefiting from 100% rates relief under the Small Business Bonus Scheme.”