Nick Raynsford, minister for local government and regions, announced today the government is to extend small business rate relief by raising the business relief threshold.
As it stands only businesses occupying premises of a rateable value under 8000 qualify for business rate relief.
Speaking at RICS business conference in London today (13 July), Raynsford also hinted there may be a ’buffer zone’ for those businesses immediately above the threshold. This system is already active in Scotland.
Under the new system these ’buffer zone’ businesses would be exempt from the premium businesses pay to cover those below the threshold. The costs will be passed on to larger businesses.
The minister also said an announcement would be made to the Commons next week on the balance of funding.....who pays for what. The key issue here is whether rates will returned to local council control.
Business rates account for around 5% of total UK tax revenue.
For more info. or comment, please get in touch.
Andrew Smith
RICS press office
Tel 020 73343891
Mb 07786 177165
Fax 020 73343722
asmith@rics.org.uk
Government is to extend small business rate relief by raising the business relief threshold
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