Gloucestershire based small businesses could benefit greatly from last week’s Budget, says Bruton Knowles‘ Commercial Partner, Angus Taylor.
Mr Taylor believes that the high concentration of SMEs and startups across the county suggest there could be more winners than losers.
SMEs in the South West, he said, have been “thrown a bone” thanks to the doubling of the threshold, from £6,000 to a maximum of £15,000 rateable value before the tax is payable.
“For small businesses across the South West this will amount to a significant overhead saving. What’s more, he says the change is “permanent”, which means businesses no longer have to cross their fingers every year in the hope the concession will be extended.
“At the lower end of the market it will certainly help startups and SMEs, with properties up to £100,000 not paying a penny, followed by two per cent for the next £150,000.”
He said that anything above £250,000 will be subject to a five per cent charge, which is a significant tax on larger commercial property transactions and may hit property investors of any scale.
“Larger businesses have been promised a simplification of the business rates system and, from 2020, a switch in the uprating from the higher RPI to the lower CPI.”
The Government is also applying a two per cent flat rate charge to new leases that have a net present value above £5m.
Mr Taylor concluded: “There is good news for small business and those making smaller transactions, but larger property investors will pay more.”
Steady Inflation Rate in February