11-10-2007
Darling to impose new business rate
News for Simply Business - independent providers of business insurance, business finance, landlords insurance, buy-to-let mortgages, commercial mortgages & information for small businesses.
Businesses are to face the possibility of increased taxation under new measures announced yesterday, the pre-budget report has revealed.
Chancellor Alistair Darling yesterday announced in the government's pre-Budget report a new measure that will enable local authorities to impose a supplementary business rate as an additional fund-raising measure.
Although reports by the Financial Times cites opposition from a number of business groups, the new proposals have been broadly welcomed by the Local Government Association (LGA).
"[However,] there is still a long way to go to address the historic imbalance between the money which is raised and spent locally compared to nationally," noted the LGA.
While the new supplementary levy may be used to assist in the funding of projects such as transport improvements, in practice, the new measures will exempt a number of businesses from paying the supplementary charge. For instance, the charge will only be payable by businesses with a rateable value in excess of £50,000.
The rate system of property taxation dates back to the Poor Law Act 1601.
Worried about cash flow if your business rates increase? Invoice finance could be the right solution for you.
Compare independent, tailored invoice finance quotes online ...