Rugby season has started with rates cuts for some Aviva Premiership clubsTuesday, September 12, 2017
The Rugby Premiership season has started, but whilst the Government has admitted that up to 500,000 shops, restaurants, pubs and even NHS hospitals have seen increases in tax bills for 2017/18, some of Britain's biggest and most successful rugby union clubs will enjoy tax cuts for the season ahead.
The Government adjusted the Rateable Values of every business property in England and Wales to reflect changes in the property market. The new Rateable Value have been used to determine the basis of the tax calculation for business rates for 2017/18.
Our analysis shows that new property values for the 12 Aviva Premiership Rugby Union clubs, which will be used to determine property tax bills for the next 5 years, have increased by over £60,000.
The biggest loser is Exeter, who's Sandy Park Stadium has seen its property value sour by 52%, followed by Gloucester’s Kingsholm Stadium at a 37.77% rise and defending champions Wasps’ Ricoh Arena being hit with a 15% rise in Rateable Value.
The biggest winner is Newcastle who has seen the value of Kingston Park plummet by almost 27% with London Irish, Bath and Sale Sharks all seeing the value of their stadiums fall.
We project that the amounts payable under the new Rateable Values over the next 5 years represents a hike of almost half a million pound, with the total bill for all 12 clubs over the life of the Rating List coming in at £8.8million.
Collectively, the 12 rugby clubs will pay over £91,000 more on average per year for the next year than they did in the last Rating List.
The club facing the biggest hike in their business rates bill for 2017/18 is Exeter who is facing an increase of 46.2% compared to last year’s bill. They’re followed by Gloucester who are forking out an extra 34% this year, and Wasps who are being stung by an extra 11%.
Bath is the club benefitting from a tax windfall of almost 4% this year compared to last, with a bill of just £45,505.
Sales Sharks, Newcastle, London Irish and Saracens will also benefit from tax cuts this season, saving almost £15,000 collectively in rates this year compared to last.
Harlequins have already suffered blows to the team as two key players, Luke Wallace and Jonas Mikalcius, are both unable to compete in the season games. Our data shows that they’re also facing a double business rates burden, as the property value of The Twickenham Stoop Stadium has increased by 3.21%, and they’re facing a 5 year rates hike of over £28,000.
Sale Sharks will pay the lowest amount of tax for the 2017/18 season, at just £31,375 for the year, which is a good job considering they’ve just announced the latest in a wave of world class signings, confirming Australian James O’Connor on a three year deal.