With the announcement of the details of the 2016 budget, business rates are to change significantly, from April 2017. Small businesses that occupy their sole business property with a rateable value of £12,000 or less will pay no business rates.
Currently, this 100% business rates relief is available if you’re a business that occupies a commercial property – including office, industrial and retail space – with a rateable value of £6,000 or less.
This means that an estimated 600,000 businesses will pay no rates from April 2017 – when the business rates revaluation comes into effect.
There will also be a tapered rate of relief on properties with rateable values up to £15,000.
In addition, the current threshold for payment of the higher uniform business rate is to be raised from £18,000 to £51,000.
KWB business rates specialist, Martin Cook, said: “This is obviously great news for businesses with a rateable value up to £12,000 – many of whom will really notice this reduction in overheads. The most interesting area now is the tapered rates liability for rateable values of £12,000 to £15,000. Companies with properties in this bracket will want to scrutinise their business rates liability as any reduction in the rateable value will mean exponential savings on rates due.
“We would strongly encourage those companies to get in touch, as our review work could easily save them thousands of pounds. To companies with larger rateable values, I would also advise to come to us, as equally sizeable savings could be made with a review, from us, of your property. ”