The key take aways from today’s budget regarding business rates are:
Chancellor Philip Hammond announced that, in order to provide up front support for the High Street through the business rates system, the government is cutting rate bills by one third for retail properties with a Rateable Value below £51,000, for 2 years from April 2019, subject to state aid limits.
We understand that this relief will apply to retail property, as defined previously in the Retail Relief Policy that was brought out a couple of years ago. This has a fairly broad definition but with some exclusions.
The government will also introduce 100% business rates relief for public lavatories to keep these local amenities open. It is understood that this will apply to stand-alone facilities eg. not those found in shopping centres.
The government will also continue the £1,500 business rates discount for office space occupied by local newspapers in 2019 and 2020.
Billing Authorities will be fully compensated for the loss of income as a result of these business rates measures.
The government will consult on the business rates treatment of self-catering and holiday let accommodation. There is concern that some owners of properties that are not genuine businesses may seek to reduce their tax liability by falsely declaring the property as available to let.
– ENDS –
For further information contact:
Baker Davidson Thomas
Telephone: 01256 840 777
29th October 2018