The Government has announced plans to extend the doubling up of the Small Business Rate Relief scheme by a further 12 months to April 2014.
The move was announced in today’s Autumn Statement and sees 350,000 businesses taken out of business rates until 2014, and over half a million small businesses benefiting from the extension.
The scheme was introduced by Labour chancellor Alistair Darling in March 2010 and saw ratepayers receive relief of 50 per cent on properties with a rateable value of up to £6,000 and a tiered relief from 50 per cent to 0 per cent relief for properties up to £12,000.
The 50 per cent relief was doubled to 100 per cent for qualifying ratepayers until 2012, which was extended to 2013 by George Osborne in last year’s Autumn statement.
Chancellor George Osborne has today extended the relief by a further twelve months.
Osborne says: “The temporary doubling of the small business rate relief scheme helps over half a million small firms, with 350,000 paying no rates at all. We have already extended it to next April and today I extend it by a further year to April 2014.”
Osborne also announced the Government was temporarily increasing the annual investment allowance for small and medium size businesses from £25,000 to £250,000.
This allows firms to claim full tax relief on expenditure on plant and machinery during a year up to a total of £250,000.
Plant and machinery include items such as cars, furniture, equipment and computers.
The increase will last for two years until 2014.