Budget announces cuts to business rates from 2017

Budget announces cuts to business rates from 2017

Posted on Friday, December 16, 2016

The chancellor announced in the budget yesterday that, from April 2017, small businesses that occupy properties with a rateable value of £12,000 or less will pay no business rates.

From 1 April 2017 the government has said it will:

  • Permanently double Small Business Rate Relief (SBRR) from 50 per cent to 100 per cent  and increase the thresholds to benefit a greater number of businesses. Businesses with a property with a rateable value of £12,000 and below will receive 100 per cent relief. Businesses with a property with a rateable value between £12,000 and £15,000 will receive tapered relief. 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.
  • Increase the threshold for the standard business-rates multiplier to a rateable value of £51,000, taking 250,000 smaller properties out of the higher rate. This will reduce business rates for many small businesses - including some high-street shops.

In addition, from next year Greater London local authorities will get powers to collect business rates rather than getting a proportion from central government. This was initially planned to be implemented in 2020.

 

Source Law Society (http://www.lawsociety.org.uk/news/stories/budget-announces-cuts-to-business-rates-from-2017/)

 

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