Heathrow Airport businesses launch group tax action
MORE THAN 70 airport businesses based at Heathrow have brought a group action against the UK tax authorities in a bid to secure business rates reductions and are expected to discuss a settlement next week.
Cargo freight and baggage handling firms are among companies based at the airport who have continued to face significant business rates payment throughout the pandemic despite a dive in passenger numbers.
In England and Wales, businesses providing handling services at airports are liable for full rates while counterparts in Scotland have been handed a 100 per cent rates holiday. The companies based at Heathrow, Europe’s busiest airport, have now launched the proceedings seeking “substantial and prolonged reductions” in the property tax.
Earlier this week, Heathrow airport itself said it has started consulting with unions over pay cuts in a process which could lead to job losses due to low traffic numbers.
It is understood real estate adviser Altus Group is advising
the group of companies, having lodged two separate “group prechallenge review” requests with the Valuation Office Agency arm of HMRC. Settlement discussions are set to start on September 7.
A Valuation Office Agency spokesman said: “We have received a number of requests from ratepayers to consider material change of circumstances due to the Covid- 19 pandemic. We are working through these and cannot speculate on the outcomes or comment on any individual cases.”