Small firms fail to make most of rate relief

Aug 20 2008 by Alex Turner, Liverpool Daily Post

SMALL firms are being urged to cash in on a Government property tax break after a study revealed three-quarters of eligible firms are failing to take advantage of it.

A survey by the Local Government Association (LGA) found only 26% of eligible North West businesses have taken advantage of the small business rate relief scheme. Across the country, this figure was much higher, at 48%, but was still less than half of the 870,000 eligible firms.

It is estimated £200m in small business rate relief goes unclaimed every year.

Properties with a rateable value of under £5,000 can claim 50% rate relief. This decreases on a sliding scale of 1% for every £100 below £10,000 rateable value.

LGA chairman Sir Simon Milton said: “Hundreds of millions of pounds is sitting around waiting to be claimed by hard-pressed bosses of small firms.

“When local businesses are facing rising costs, it is vital they apply for the tax relief they are entitled to. Many thousands of businesses are entitled to a tax rebate that could make the difference between business as usual and bust.”

Liverpool-based property agent The Venmore Partnership is also calling on local businesses to make sure they don’t miss out.

“So many small firms are unaware of this tax break,” said Venmore managing partner Simon Wall. “The Government’s promotion of this scheme is poor and needs to be much, much better.”

Small business rate relief is available to ratepayers who occupy either only one property, or

one main property and other additional properties providing those additional properties have rateable values less than £2,200 and the total rateable value of all the properties remains under £15,000.

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