The most significant of the small changes made in the Chancellor’s 2017 Spring Budget is in connection with business rate relief.
The threshold for 100% Small Business Relief has been left at Rateable values under 12000 despite rumours that it might be increased.
However, the following additional measures are now being put in place:
- Limiting the annual increase in rates payable for small businesses losing Small Business Rate Relief to the greater of £600 or the real terms transitional relief cap;
- a £300 million business rates hardship fund to enable local authorities to grant discretionary relief to individual hardship cases; and
- a one year £1,000 business rate discount for public houses with a rateable value of up to £100,000.
The next rating revaluation is due in 2022.
Having studied the newly published rating list for April 2017, we have noted that many of our Clients premises are faced with considerably higher rateable values than those applying in the current rating list.
This is despite the fact that market rentals have reduced in many locations since the last antecedent valuation date of 1st April 2008.
No doubt a high proportion of businesses will be lodging business rates appeals.
This is a service which Andrew Idle Associates offer, so please get in touch and we will carry out an initial online review of your assessment.
However, it does beg the question as to why, when the Government are supposedly helping small businesses, such valuations have been adopted in the first place.
There is no change to stamp duty either on sales or commercial leases, despite many calls for further reform. Meanwhile, the reduction in dividends payable tax-free to Directors and Secretaries of Companies as employees will impact on such individuals who run property companies as well as other corporate businesses.
Further reading: Philip Hammond criticised for exaggerating pub relief scheme