In the Budget Chancellor George Osborne outlined plans to help small businesses first by reforming stamp duty and abolishing business rates.
Partner at Bruton Knowles office in Nottingham, James Bailey comments on the Budget and why this could be a turning point for retailers, shopkeepers and SMEs.
He said: “As part of the Chancellor’s long term economic plans, the biggest tax break announced in today’s Budget was the government’s promise to abolish business rates for 600,000 small businesses by April 2017 and to double the business rate relief permanently. This will allow the relief to increase from £6,000 to £15,000 and from £18,000 to £51,000 for the higher rate.
“Furthermore, the Chancellor outlined plans to reform stamp duty for commercial properties by removing the ‘slab’ structure – just as he has done previously with residential property. After midnight tonight, commercial property purchases up to £150,000 will fall into a zero-rate band, those above £250,000 will be subject to a two per cent rate with those above this will be charged at five per cent – a move that will allow for up to 90 per cent of businesses to have their tax bills cut.
“With corporation tax also falling by 17 per cent by 2020, the most recent budget will come as a welcomed relief to ‘a nation of shopkeepers’ and retailers with the outlined plans to allow small business to save in total £7bn a year.
“Ultimately, the initiatives will benefit local communities with the extra savings helping companies to generate further job creation, buy or rent bigger commercial properties and increase revenue. Smaller businesses will be able to strive and grow in a competitive marketplace without the pressure of tax and business rates weighing them down.”
