Chancellor George Osborne has announced that the small business rate relief (SBBR) will be extended for an additional year, in order to ‘support 600,000 of the country’s smallest businesses’
The new measure will see a one-year extension to the current rules.
Around 405,000 of the smallest businesses will continue to receive 100% relief from business rates, with around a further 200,000 benefiting from tapering relief.
Under this regime as it currently applies to 31 March 2016, availability of the relief depends on whether the ratepayer has other properties, and if the relevant property has a rateable value not exceeding £12,000.
The 100% relief (doubled from the usual 50%) is available for properties with a rateable value of £6,000 or less; the rate of relief decreases from 100% to 0% for properties with a rateable value between £6,000 and £12,000.
If the property has a rateable value in the band from £12,000 up to £18,000 (£25,500 in Greater London), the ratepayer is considered a small business, and, whilst there is no relief as such, business rates are be calculated using the small business multiplier instead of the standard one.
The government is also undertaking a review of business rates. The review will be fiscally neutral and will report at Budget 2016.
For all the latest measures affecting business, go to www.accountancylive.com/budget
