SMEs hit by rates relief delay
30th May 2017
Small businesses are still waiting for financial support promised in the Spring Budget to help them cope with rising business rates.
Chancellor Philip Hammond announced a £300 million fund over 4 years to provide relief for smaller businesses most affected by revaluated business rates, which came into effect on 1 April 2017.
Business rates are defined as a property tax on rental values.
Total funding available to support local authorities’ discretionary relief scheme is:
- 2017/18: £175 million
- 2018/19: £85 million
- 2019/20: £35 million
- 2020/21: £5 million.
Under the revaluation, small business rate relief will gradually fall from 100% to 0% for eligible properties with a rateable value of £12,001 to £15,000.
Businesses using 1 property with a rateable value below £12,000 will not be required to pay business rates.
Firms no longer getting small business rate relief will not see their bills increase by more than £50 a month from 1 April 2017 to 31 March 2018.
Contact us to discuss how these changes may impact your business.