The most notable announcement in the Autumn Budget 2018 is that the Chancellor has reduced business rates bills for Small Businesses who occupy retail premises with a Rateable Value of under 51,000 by one third.
Whether the actual ‘cash’ reduction will be limited by Transitional Phasing has not been clarified.
As ever the devil is in the detail with such changes, and, despite carrying out various online searches, not one commentator drilled down to ascertain the true financial impact on this new business rate relief. It is, however, said that bars and cafes, as well as retail shops, will benefit from the concession.
We have various clients in the retail and restaurant sector who will find the initiative very welcome, provided it really does save them one third in what they have been paying to date.
A client of ours in the wholesale cash and carry sector enquired as to whether they will receive a reduction – the answer appears to be ‘no’.
There wasn’t much else of relevance to those in the commercial property sector, apart from some tinkering with capital allowances which, when netted down, will probably make no appreciable difference to most businesses and, in fact, may have a negative effect in so far as an already complex area has been made even more challenging to get one’s head around.