Government Boost for Business Expansion
The Government have announced that Small Business Rate Relief (SBRR) has been extended until April 2015 which was probably not unexpected. The real boost has come with the confirmation that the SBRR criteria have been amended to allow businesses in receipt of SBRR to keep it for one year when they take on an additional property. Under the current scheme a second property would cause them to lose the benefit completely.
SBRR allows small companies occupying just one property with a rateable value (RV) less than £12,000 to make savings in business rates. For RV’s up to £6,000 no business rates are paid and for RV’s between £6,001 and £12,000 a sliding scale from 0 to 100% is paid. Up until now there has been a disincentive for businesses to expand into a second property, as a second property, even though in its own right might qualify for SBRR, meant a complete loss in the business rates saving on both premises.
The Government have changed this policy so that for any second premises taken after 1 April 14 the relief remains in place for a 12 month period. For companies wanting to take on a second property the scheme could be worth up to £5,500 in business rates savings in the next 12 months!
SBRR is still only given to businesses that apply for it. Businesses that think they might qualify should contact their local authority business rates department to obtain the necessary application forms and apply for the saving.
Richard Jones – 16 December 2013