UK Property Tax Shake-up: Impact on High-Value Commercial Premises

The UK's commercial property tax is set to increase for high-value properties while reducing for retail, hospitality, and leisure properties. Supermarket giants like Tesco and Sainsbury's have expressed concerns that these changes could exacerbate food inflation.

The UK government is poised to adjust commercial property taxes, significantly impacting high-value properties, as stated in a report by the Office for Budget Responsibility (OBR) on Wednesday. This move comes just before finance minister Rachel Reeves' budget announcement.

The OBR report highlights that property tax rates will see a reduction for retail, hospitality, and leisure sectors, while owners of high-value properties will face increased rates.

Major supermarket chains, such as Tesco and Sainsbury's, have raised alarms over the inclusion of their extensive high-value retail premises in the top tax band, fearing this will contribute to already elevated food inflation.

(With inputs from agencies.)