Budget 2016 – Business Rates

Business Rates – Reductions Planned

The Chancellor has decided that the Small Business Rate Relief (SBRR) will be permanently doubled from 50% to 100% with effect from 1 April 2017. Moreover, the thresholds are being increased to benefit a greater number of businesses.

Businesses with a property that has a rateable value of £12,000 or less will receive 100% relief. Businesses with a property that has a rateable value between £12,000 and £15,000 will receive tapered relief. This means that 600,000 small businesses, occupiers of a third of all properties, will pay no business rates at all – a saving worth up to £5,900 in 2017-18. An additional 50,000 will benefit from tapered relief.

Additionally, the threshold for the standard business rates multiplier will be increased and only apply to those properties with a rateable value of over £51,000, taking 250,000 smaller properties out of the higher rate.

From April 2020, taxes for all businesses paying rates will be cut through a switch in the annual indexation of business rates from the RPI to be consistent with the main measure of inflation, currently the CPI, which is typically lower.  In 2020-21 alone it is estimated that this will be worth £370 million to businesses and the benefit will grow significantly thereafter.

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Feb 16

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I had recently finished my VT year and had started ­working as an associate at a practice just outside Aberdeen. I asked several other dentists in the area and the only name people spoke was Dodd & Co. I have been with them for two years now and their ­service has been impeccable. So far everyone I have dealt with has been friendly, knowledgeable and helpful. They have answered every one of my questions promptly (no matter how stupid they may have been) and have given me great advice regarding many aspects of our taxation system. I have had and will have no qualms in recommending them to anyone else in our profession.
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