Budget 2016 – Business Rates Cut and New Commercial Stamp Duty Rates

Posted on 16 March, 2016 by Chris Grigorovsky

George Osborne has announced that from April 2017, business rates will be getting a substantial cut, which is set to benefit small businesses going forward.

The current system sees 100% relief given only to businesses that occupy property such as a shop or office with value of £6,000 or less. Now, with the new changes, businesses that occupy property with rateable value of £12,000 or less will pay no business rates.

There was also an introduction of tapered relief on properties worth up to £15,000. The Chancellor has said these new measures will remove over 600,000 businesses from paying business rates as of next year.

Elsewhere, new Stamp Duty rates for commercial property will be implemented from 17 March 2016, where rates will apply to the value of property over each tax band.

The new rates and tax bands will be 0% for the portion of the transaction value up to £150,000, 2% between £150,001 and £250,000 and 5% above £250,000.

Now buyers of commercial property with a value of up to £1.05 million will pay less stamp duty. Also set for change is the stamp duty rates for leasehold rent transactions, bringing in a new 2% stamp duty rate on leases with a net present value over £5 million.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme

America, Amazon Wants You!

UK Firms Battle To Survive

COVID-19 Grounds EasyJet Fleet

ECB Emergency Fight Back Aganist Covid-19

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market