Rate this ……..  Small business rate relief

Gordon Brown’s (last) budget has pushed to one side thoughts about business rate demands that arrived last week. Whilst the budget inevitably has the immediate political spin just as inevitably rates will have a more lasting and direct impact on any business.

Rates are part of what is usually the second highest cost to any business after staff so reducing the rate burden will help overall profits and increase competitiveness.

Accountants have the opportunity to advise their small business clients on this and apply to their Rates Authority for this relief which is waiting and is immediately available.

Eligibility is basically:

• Properties with a current rateable value (RV) £5000 or less will get 50% relief

• Between £5000 and £10,000 relief decreases on a sliding scale by 1% for every additional £100 RV. So RV £6,000 will get 40% relief and £7,500 will get 25% relief.

• This must be a business’s only property except that relief can be given to others up to £2,200 as long as the total does not exceed £15,000 outside and £21,500 inside London. This covers the situation where there are say separate car parking spaces.

• A small reduction in the rate in the pound is given for properties between £10,000 and £15,000 outside and £21,500 inside London.

For more complex issues valuations surveyors can assist in reducing the rateable value or providing advice on void rating relief.

Log on to the government site below for further advice

http://www.mybusinessrates.gov.uk/rates/other_reliefs/index.html

Or go to the page on business rates on our site and see what our clients say 

http://www.rdn.co.uk/rates.htm

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Log on for more information and advice:                  www.rdn.co.uk     

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This is part of a regular series of topical articles provided exclusively by RDN Chartered Surveyors. If you would like further information or add your comments please reply to this e mail or contact Roger Nelson on 0800 902 0466