A ‘headline catcher’ in the recent Budget was the Chancellor’s announcement that he was extending by one year, the Small Business Rate Relief (SBRR) holiday. But what did George Osborne actually mean by this statement?
Well, as Michael Blank of Tenant Advisory Group explains, the original Small Business Rate Relief holiday was brought into being by the former Chancellor, Alistair Darling. In his last ever Budget, he granted ratepayers occupying properties with a Rateable Value (‘RV’) of less than £6,000, a 100% exemption from business rates. However, it was for one year only, running from 1st October 2010 to 30th September 2011.
At the same time, he brought in taper relief for qualifying occupiers of properties with an RV of between £6,000 and £11,999. These taper relief rates vary from 100% at £6,000 to 0% at £12,000.
“What George Osborne has done is to simply extend this relief until 30th September 2012. Of course, for those occupying small or very secondary properties this is a valuable concession. But for those occupying properties with an RV close to £12,000, the savings will be relatively small.” Michael says.
After 30th September 2012, the SBRR scheme will revert back to its original and less generous form and as Michael Blank explains, “If you occupy a small or secondary style property, for example a small shop in a local precinct, our advice is to act upon this extension at the earliest possible opportunity as it might be one of the only concessions you get from this Chancellor!”