The Chancellor today announced a measures in the Spring Budget aimed to reduce the business rates bills for some small businesses. Business rates are a tax levied on the value of business property. The measures include a cap on how much business rates will rise for small businesses whose property has moved above the threshold for Small Business Rate Relief, a fund for Local Authorities to offer discretionary relief for businesses and a one-off reduction of £1,000 in business rates for the majority of pubs.
These measures are being introduced as businesses face revised bills in April after the first revaluation of business properties since 2010. Since many businesses have experienced their property values – and tax bills – changing significantly in this time, there are many significant winners and losers.
While this introduces some limited relief for specific businesses, the measures amount to less than 0.5% of business rates revenue over the next 5 years. The Chancellor did signal an intention of reform – including finding better ways to tax the digital economy – which could look to address several broader issues including:
Frontier regularly advises clients on these and other tax issues.
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