The Government said that under the changes, nearly 300,000 eligible small shops in England will benefit.
In some cases this could give a typical small shop, pub or restaurant with a rateable value of £10,000 savings of 30% extra or more when compared to last year’s business rate bill.
Businesses can now choose to spread their bill payments over 12 monthly instalments rather than 10 after rules were changed that aim to give businesses greater control over their cash flow.
Support
Eric Pickles, Secretary of State for Communities and Local Government, said: “A whole string of changes to business rates kick in today bringing new support to local shops, pubs and firms. In some cases shopkeepers could see their bills cut by a third extra or even more, which is worth thousands of pounds in tax breaks.
“Together with our sensible changes to planning rules and action to tackle unfair parking practices, we are helping local communities secure the future of their high streets.”
The full list of business rate support measures that take effect on 1 April 2014 are:
- A new reoccupation discount of 50% for 18 months for new occupants of retail premises that have previously been empty for a year or more
- Allowing businesses to pay their bills over 12 months (rather than 10)
- A 2% cap on business rate inflation increase
- The new £1,000 business rates discount for local shops, cafes, restaurants and pubs (up to a rateable value of £50,000) estimated as more than £272m of tax relief this year
- The doubling of the extension of the small business rate relief until 31 March 2015, which will mean 360,000 business properties pay no bill at all.