The British Property Federation says the system of taxing property is deterring investors and has called on the Government to simplify the process.
In a submission to the Treasury ahead of next month’s Budget, the BPF said the Government should take “a more holistic approach to taxing real estate” and scrap the “panoply of different taxes, fees and levies”.
It said property taxes have become more complicated and urged the Government to “explore whether a different system of real estate tax could result in the industry making its fair contribution to the Exchequer in a more economically efficient way”.
It added: “Complexity in tax and regulation not only impacts on productivity, it also has a negative impact on investor and business sentiment.”
It also wanted online businesses taxed more as they tended to have a low property holding but generated high sales.
Business rates recently came under fire when the Government revalued properties, leading to rising bills.