PROPERTY - 14.04.2011

Business rates cut in Budget

Small Business Rates Relief (SBRR). There was good news for business rate payers. The current reduction, which applies to companies occupying business premises with a rateable value (RV) of up to £12,000, will be extended for another year until September 30 2012. Where the RV is £6,000 or less, no rates are payable. Above that the reduction is given on a sliding scale. Despite previous publicity, a recent official report suggested that around £200 million of SBRR is unclaimed.

Tip. SBRR isn’t given automatically, it must be claimed. It’s not a complicated process and usually just requires you to complete a single form. Contact your local council if you think yours is one of the many companies currently missing out.Butif your business is already claiming SBRR, you don’t have to do anything; in October it will automatically be extended for another year.

Enterprise Zones. The Chancellor didn’t only single out companies trading from small premises for relief from business rates. There will also be a rates reduction where businesses locate to one of the new 21 so-called Enterprise Zones (EZs) (see The next step). There are no details as yet as to how much this will be worth but councils have been put on alert to expect changes. We’ll keep you posted on action to take to ensure that your company receives the rates relief it’s entitled to.

Business Property Renovation Allowance (BPRA). Usually, renovation costs for business premises can only be claimed against your company’s tax bill when it makes a capital gain from selling the property. But the BPRA tax break allows you to claim a deduction from trading profits for the renovation and conversion of unused business premises located in certain parts of the country (see The next step). BPRA was due to expire in April 2012 but has now been extended for five years.

For details of the new EZs (CD 12.14.01A ), for details of when BPRA applies (CD 12.14.01B), visit http://companydirector.indicator.co.uk.