Rates Relief Boost For Small Businesses

An estimated 530,000 small businesses will benefit from enhanced levels of rate relief under the Small Business Rate Relief scheme, which came into effect on 01 October 2010. Business properties with a rateable value of less than £18,000 (£25,000 in London) – typically those occupied by smaller businesses which experience rate charges as a higher proportion of their turnover – are eligible for a rate charge discount, with properties rated below £12,000 qualifying for a further percentage rate relief. Under the standard rates relief scheme, properties with a rateable value below £6,000 will qualify for a 50% relief, and properties with a rateable value of between £6,000 and £12,000 will receive a percentage relief calculated from 50% on a sliding scale. All properties rated below £18,000 (£25,000 in London) will pay lower rates calculated using the small business multiplier, which is 40.7 pence for 2010/11.

(Thanks to Clive Gross’s newsletter from 1066, for the info).