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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May 24

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I have been with Dodd & Co since I started my business in 2004 and have always been impressed with their professional, yet friendly service. They are calm, organised and have a great manner. My business is only small, but I still feel important and they always try to help me get the most out of my finances. As Market Sense has developed I have come to really value and rely on their input – they take the pain and hassle away from the VAT and HMRC and they have given me great advice on developing for the future. I have referred clients who are also very pleased with the service – and the afternoon tea at Penrith Show is much appreciated!
-- Tracey Errington