Small business rate relief is a game changer – December 2016

Every five years or so, the Government adjusts the value of business rates to reflect changes in the property market. It’s due to happen again in 2017 in England, Scotland and Wales. (There are no plans for Northern Ireland yet.)
But if you’re a small business operating from a relatively inexpensive property, April 2017 promises a welcome fillip.
Back in March the then Chancellor, George Osborne, announced that those occupying properties with a rateable value to £12,000 or less will pay no business rates.
Yes, you read it right!
The Government is permanently doubling SBRR (Small Business Rate Relief) from 50 percent to 100 percent and increasing the thresholds for payment. This’ll benefit a huge number of businesses across the UK.
Businesses with a property with a rateable value of £12,000 and below will receive 100 percent relief (previously 50 percent). This should benefit well over half a million small businesses and save them thousands of pounds a year.
There’ll be tapered relief for businesses with a property with a rateable value between £12,000 and £15,000, affecting a further 50,000 businesses.
Increasing the threshold for the standard business-rates multiplier to a rateable value of £51,000 will take a further 250,000 smaller properties out of the higher rate. This will reduce business rates for many small businesses – including many high-street shops.
So what does it mean for our local businesses?
While the biggest impact of rateable value changes is likely to be in London, where commercial (and indeed all) property prices continue to soar, the impact on our area is likely to be only positive.
It’s a very welcome counterbalance to the double whammy of increased minimum wage levels for staff and the impact of a weaker pound on imported goods.
We’re expecting that it will fuel demand for more small units and retail outlets, encouraging small business to grow and flourish, with fewer fixed overheads.

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Vanessa Penn

About Vanessa Penn

Vanessa Penn was formerly Director of Commercial Agency for Countrywide Commercial, Bradford & Bingley and Douglas Duff part of Erinaceous Plc. Vanessa now runs her own agency Penn Commercial located in Ipswich, Suffolk www.penncommercial.co.uk. Penn Commercial boasts a number of local, regional and national clients and has formed an excellent and loyal client base.
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