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.
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