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BUDGET 2010: Govt cuts small business rates and doubles investment allowances

The Government has announced plans to cut business rates and double the annual investment allowance.

In his Budget today, Chancellor Alistair Darling announced plans to cut business rates for 500,000 small businesses in the UK for one year from October 2010. He said of those affected, 345,000 will pay no business rates.

Darling also revealed plans to double the investment allowance to £100,000. Darling said this would mean 99 per cent of all businesses would be able to deduct all plant and machinery costs.

Darling said he would also increase the relief on Capital Gains Tax for entrepreneurs from £1m to £2m.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Business rates not changing to oct why not from April.
    This government will not be around in October!

  2. I want to know why different departments of the council and local goverments class a small business in different ways.
    What is officialy a small business? I have 2 shops and am class as NOT a small business, so have to pay full business rates on both shops?

  3. Like Paul we have two shops one of which we are closing as we can not afford to pay two full business rates now that the rates have gone up for 2010/2011. By closing one we can claim small business rate relief on the other. – Another empty shop on the high street. .

    We are a small business in the Gov definition. Perhaps an April introduction would have helped us.

  4. Yes ,I was a small business with one shop ,but my rateable value was £75k . I NEVER qualifed for any relief .

    My business is gone but I have a empty shop paying full business rates.Any ideas how I can delist as there are 10 empty shops in the street and charity shops are not interested.

  5. the problem with all the goverments promises to small business men and women is that all the quangos like business link and others recieve more money than actual businesses very frustrating to people with ideas for growing business quickly we miss the windows of opportunity due to daliance, ask for example natwest for theire rates on lending and the amount you as a business have to find the answer 70% at least

  6. Why not split 2 shops into 2 businesses?

  7. I welcome this news in the budget (which hasn’t been given much publicity?) Shops around me have not realised the value of this decision to us. I worry, however, that with a change of government they may decide to cancel this help. As I have struggled to pay the rates this year (and I still have one payment to make) I will be really disappointed if this budget statement is not honoured.

  8. I have one shop, 230sq foot secondary retail in an area away from the high street. I have 2 employees and a turnover of £120k.
    Business rateable value was £10,500 so we were classed as a ‘Big’ business. Ha
    Any help is 15 years overdue and far too late to save the high street no thanks to unconscious politicians, but at least its a start.

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