The online retail giant – which made £389billion globally last year – will share more profits following changes brought in by the Chancellor’s Autumn Statement, says real estate adviser Altus Group.
Rateable values, which are used to calculate business rates tax, will now be based on property values of April 1, 2021.That means pandemic “winners”, such as online retailers, will pay the taxman more, while physical stores’ taxes will fall.
Department stores Harrods and Selfridges could make combined savings of £15million. But the rateable value of one of Amazon’s depots in Longtown, Cumbria, is to increase by 145 percent, from £154,000 to £377,500,Altus said.
Amazon’s overall business rates will rise by around £28.75million next year and could cost the US firm about £100million in extra tax over three years, before any tax relief is claimed.
The company has already noted an escalation in the amount it is taxed in Britain.
In July, it reported its total tax contribution had grown to £2.77billion from £1.55billion in a year.
