Small businesses lose out on ₤200m in tax relief

The Department for Communities and Local Government (DCLG) has warned some local authorities have been following outdated Whitehall guidance imposing the deadline of yesterday for small business rates relief claims.

Two years ago, under an updated guidance, the department introduced a three-year deadline which meant applicants had until 2010 to apply for the 2007-08 tax relief of up to ₤1100 for individual businesses.

About 870,000 firms were eligible for the rebate, introduced in England in April 2005. The Local Government Association (LGA) told The Daily Telegraph yesterday only half had claimed.

But some council websites and application forms for the relief are stating that, those who missed yesterday's deadline, would not be able to claim tax relief for 2007-08.

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