TaxPersonal TaxBusiness rate ‘top up’ may be scrapped

Business rate 'top up' may be scrapped

The government is believed to be considering backing down on proposals to allow local authorities to levy a supplementary business rate.

The plan, revealed in last year’s green paper on local government financing, would allow councils to levy local taxes of up to 5% of the national uniform business rate.

Instead, it has been reported that the Department of Environment, Transport and the Regions, is considering the introduction of small business improvement districts, allowing businesses to decide with local authorities on whether local taxation is justified.

The change would mean that local taxation would be limited to funding specific economic regeneration projects that would only go ahead if businesses based in the BIDs agreed.

A spokesperson for the DETR said: ‘Responses to the green paper showed a lot of support for a local top-up to business rates to fund initiatives important to business, but also showed a concern that the proposed decision making process was too cumbersome. We now need to work with business and local government to see a way forward.’

Final proposals are expected to be published in a white paper later this year.It had been feared that original proposals would have cost local business more than Pounds 1bn and would lead to companies withdrawing millions of pounds in voluntary contributions to regeneration schemes.

Links

DETR online

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

1m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

3m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

3m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

5m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

6m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

6m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

6m Alia Shoaib, Reporter