Today’s Budget has brought some very welcome news for small businesses courtesy of the Chancellor’s announcement of a super-sized small business rates relief scheme that is due to commence from the start of the new 2017 rating list.
The finer details of how this will work are thin on the ground at the moment but it appears that properties with a total Rateable Value below £51,000 will be winners.
NigelFletcher.jpg  Andy Hulbert
Nigel Fletcher and Andrew Hulbert of Harris Lamb’s Rating team
At present, the small business rate relief exemption is only available to firms with a Rateable Value of less than £6,000.
But today, George Osborne announced that the threshold for the 100% small business rate relief exemption will raise to £12,000, with relief being tapered between £12,000 and £15,000, not only this but the threshold for the standard multiplier will also increase to £51,000.
In essence, this means that from April next year, 600,000 small businesses will pay no business rates at all, and that 250,000 further UK businesses will see their rates cut, so that all in all, half of all British properties will see their business rates fall or be abolished altogether.
The announcement couldn’t have been much more positive for small business owners, and we’ll be working with our clients to ensure they fully understand the impact of today’s revelations on their financial situation.
It is, however, unclear how this will effect council budgets, given the announcement in the Autumn statement that they will be retaining 100 per cent of the business rates generated in their areas.
To view the full Budget text, visit:https://www.gov.uk/government/speeches/budget-2016-george-osbornes-speech