A planned cut to business rate rises will be brought in in 2018 rather than 2020 following an announcement by the chancellor in this Autumns budget.
Next year, rates will rise in line with the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI). From April, Business Rates will now go up by 3% rather than 3.9% which would have been the case if linked to RPI – a concession worth some £2.3bn according to Mr Hammond.
The chancellor further promised to change the legislation where firms occupying more than one office in a multi-let building were unable to benefit from potential savings (generally applicable when the office space is assessed as a single entity). The anomaly had been dubbed “the staircase tax” by opposition groups. The chancellor said he would change the legislation which would also be backdated to enable firms to claw back any overpaid tax.
Finally the chancellor advised that from now on Rateable Values of commercial property would be re-assessed every 3 years rather than on a 5 yearly basis.