Business rate changes
Business rates are a huge burden for many businesses, so it’s good to know that the increase in business rates will be capped at 2% for 2014/15.
Where your business operates out of a single small commercial building you may be able to claim small business rate relief (SBRR). For properties in England the SBRR gives up to 100% relief for those with rateable value of up to £6,000 and a tapered amount of relief for properties with a rateable value of up to £12,000. The SBRR was due to finish in March 2014, but it will now run until 31 March 2015.
The SBRR normally applies where the business occupies only one property. From 1 April 2014 businesses that take advantage of the SBRR can take on an additional property and not lose the relief.
There are separate relief schemes run by the Assemblies or Parliaments in Wales, Scotland and Northern Ireland. There are also special relief schemes for charities and rural properties.
In 2014 two new business rates relief schemes will come into effect for retail properties:
- reoccupation relief giving a 50% discount for up to 18 months on business rates on retail premises which have been empty for at least a year; and
- a discount of £1,000 for properties with a rateable value of up to £50,000.
The discount will only apply to shops, cafes, pubs and restaurants, not to betting premises, banks and payday lenders.
We can help guide you through the maze of business rates reliefs for your business.