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RMIP victory as VOA announces rate cuts

29 November, 2010
Page 4 

The year-long campaign by RMI Petrol to challenge the 2010 Revaluation Scheme, has won significant rate reductions from the Valuation Office Agency.

 

The campaign saw all sectors of the industry independent retailers, oil companies and supermarkets work together to achieve savings estimated at around 10-25% for a large proportion of the UK network.

 

RMIP chairman Brian Madderson is extremely pleased with the cuts, but stressed that the fight will go on: "The 2010 scheme is now certainly fairer than previously and fits better with the market approach to value, but it has not proved possible yet to amend what is now a performance-related tax on the shop element. This is disappointing as the forecourt shop is becoming such a key area of profit contribution."

 

Adam Wadlow, partner at property specialist Barber Wadlow, appointed by RMI Petrol as ratings advisor, said: "For retailers to build a sustainable business they need to have a successful shop, but the stronger they grow their shop business, the higher the tax. Standalone c-store retailers can grow their business and only be taxed upon the square footage of the building. The petrol retailing sector is being penalised because of the way value is approached."See News Extra page 10.