Business rates are expected to double this week as small businesses across the UK are to get new property valuations that will make them ineligible for small business rate relief.
From April 1st the Valuations Office Agency (VOA) are putting new regular valuations into effect. As a result thousands of companies could be taken out of the small business rates relief scheme, under which rates are dramatically cut for companies with property that has a value of under £12,000.
It is thought that 40% of the 400,000 businesses throughout the UK that are currently enrolled on the scheme are likely to lose their eligibility when the new rateable values come into force.
The Government believe that these companies will not benefit from the transitional relief promised to other firms. However, Barbara Follet, a minister in the Department for Communities and Local Government, stated that the transitional rate relief scheme would:
“Ensure no business property sees its rates bill increase by more than 11pc as a result of the revaluation, with maximum increases capped at just 3.5pc for small properties”.
The Government have promised a one year rate holiday, beginning in October, for any small company with property that has a rateable value of under £6,000. Despite this, there are still a significant number of companies that will see their bills double from tomorrow night.