Kingston CPC were closely watching the Budget on Wednesday. Small businesses have welcomed the long overdue reforms to the business tax policy.
From April 2017 the following will apply:-
1. Qualifying small businesses that occupy property with a Rateable Value (RV) of £12,000 or less will pay no business rates (100% Small Business Relief).
Currently the 100% relief applies if you are a qualifying small business occupying a property with a Rateable Value (RV) of £6,000 or less.
2. Tapering Small Business Relief (SBV) will apply to properties with an RV of £15,000 down to £12,001.
Currently the tapering applies up to an RV of £18,000.
3. The higher Rate in £ Uniform Business Rates (UBR) will only apply on properties with an RV of £51,000 or more.
This is currently £18,000 and above.
4. Future Business Rate increases are to be based on the Consumer Price Index (CPI) rather than Retail Price Index (RPI).
The Stamp Duty Land Tax (SDLT) was also amended. This came in effect from Wednesday night (16th March).
- 0% up to £150,000
- 2% from 150,001 to £250,000
- 5% above £250,000.
The change in SDLT means that all property sales below £1.05 million will pay less SDLT.
On rent transactions SDLT will change to 2% on leases with a Net Asset Value (NAV) over £5 million.