Another twist in the ‘Staircase Tax’ saga- car parking spaces to be taxed separately

Thursday, September 21, 2017


The fallout from the so-called "Staircase Tax" following a Supreme Court ruling has led to tax officials to also turn their attention to tax car parking spaces at offices.

It is understood that the the Valuation Office Agency, an Executive Agency of HM Revenue & Customs, are also considering that "car parking needs to be separated from offices" telling staff  "this cannot be avoided". This is yet another consequence from the 'Mazars' decision.

The 'Mazars' judgment has led to valuation officers giving separate valuations to properties which are physically separate, dubbed the "Staircase Tax" leading to increased and backdated business rates bills and causing an outrage from small firms and MPs from all political parties.

But, where an office is rented together with car parking spaces, valuation officers previously had the discretion to assign a single rateable value, reflecting the realities of business.

It has been learnt that valuation officers at the VOA may also be looking to assign a separate Rateable Value to dedicated car parking spaces being told that "there should be no £0 or nominal RV (rateable values) assessments in the list" meaning extra business rates bills for those firms with allocated car parking spaces which could be backdated to 1st April 2015.