This means business properties carry a disproportionate share over the overall tax burden, according to global tax firm Ryan and places the UK in a structurally more exposed position than international peers.
Its 2026 Annual Business Rates Review analyses 2026 revaluation across England and Wales and showed the UK’s property taxes as a percentage of GDP was 3.7%, higher than France (3.4%), Canada (3.4%), Luxembourg (3.3%) and Belgium (3.2%).
This came as business rates receipts are expected to rise to £37.1bn across the UK for the coming year, up from £33.6bn prior, following the revaluation of business rates in England, Scotland and Wales.
Disproportionate share
Ryan practice leader for Europe and Asia-Pacific property tax Alex Probyn said: “The UK sits at the very top of global rankings for property tax.
“That is not a marginal difference but it reflects a system where property is taxed more heavily than in any other comparable economy.
“The result is business property is carrying a disproportionate share of this overall tax burden and that is beginning to weigh heavily on investment, particularly in sectors that rely on physical assets and long-term capital.”
Ryan’s analysis highlighted how property taxation has become embedded in the UK’s fiscal mode, limiting the scope for reform without wider tax changes and increasing the risk businesses bear a growing share of the burden.
Structural issue
Furthermore, the tax firm stated while revaluations were intended to redistribute liabilities rather than the overall tax take, the analysis showed receipts continue to increase as a result of inflation-linked rises, policy changes and the removal of reliefs during the pandemic.
Probyn added: “This is not simply a question of valuation methodology, it is a structural issue.
“Property taxes in the UK are the highest by international standards and the system is designed in a way that continues to increase the yield over time.
“That creates a clear tension between the need to raise revenue and the need to support investment. That balance has to be addressed.”
The report also warned the impact of the 2026 will be felt across multiple sectors and urged operators to ensure they engage in the Check, Challenge, Appeal process early to make sure tax bills are accurate.