Pub owners have reason to celebrate as the Government pledges to a £1,000 business rates cut for pubs.
Who can benefit from the rate cuts?
This valuable tax relief will be available to pubs with a rateable value of less than £100,000 available for a year from April 2020.
The welcome support to public houses is in addition to the previously announced cuts for small shops who will see their bills cut by 50 per cent.
Savings of up to £13,500
18,000 pubs are expected to benefit from the business rate cut for pubs. Smaller pubs already benefit from an extended retail discount to their business rates, which could mean up to £13,500 saving off their annual tax rate bill for tax year 20/21.
For example, if a small pub has a rateable value of £50,000 over the year, it would generate an annual rates bill of £25,000. With the discounts coming into place, they will be able to reduce this by 50 per cent and an additional £1,000 tax relief. The rates bill will therefore be cut from £25,000 to £11,500.
Changes From April, the new tax year
From April this year, the following changes will apply:
- small shops and cafes will see their bills halved as the retail discount, currently a third off, is extended to 50 per cent;
- music venues and cinemas will become eligible for the retail discount;
- a £1,500 discount for local newspapers office space will be extended for a further five years.
If you are a small business owner looking to find tax efficiencies, please get in touch to see how we can help.
Written by Shaima Todd