Autumn Statement 2013 Review: Businesses

 

The main tax changes relate to business rates.

 

The increase in business rates will be capped at 2% from 1 April 2014, for one year. This cap will apply to all businesses.

 

Small business rate relief will be available at 100% for a further year. This means that until 31 March 2015, properties with a rateable value of £6,000 or less will not pay business rates. Thereafter, the relief is expected to return to 50%.

 

Retail businesses, restaurants and pubs will be eligible for a business rates discount of £1,000 for two years, starting on 1 April 2014.

 

Finally, businesses will now be able to pay rates over twelve months instead of ten.

 

There are very few changes to corporation tax. The most welcome announcement is that there will be no further changes to the rules that apply to loans made by companies to director/shareholders.

 

The Chancellor has confirmed that changes will be made to partnership taxation. These will affect partnerships with corporate members and LLPs with salaried members. The detailed proposals are expected to be announced next week.