Spring Statement 2018 – relief for small business as Chancellor announces new support for entrepreneurs and firms
Business rates revaluations will be brought forward a year to 2021 while £80million will be used to help support small firms taking on apprentices
SMALL businesses will get an £80million boost to help support apprentices entering the world of work.
Delivering the first Spring Statement to the House of Commons, Chancellor Philip Hammond said the funding will be be released to help both employers and apprentices achieve their goals.
He told the House: "We are the party of small business and the champions of the entrepreneur."
Hammond also confirmed that the next business rates revaluation will be brought forward by a year from 2022 to 2021.
It was announced in the Autumn Budget that revaluations will take place every three years - rather than the current five - to make bills more accurately reflect the current rental values of properties.
This means the businesses will benefit from the change to three-year valuations earlier, with the first now taking palace in 2024.
Gerry Biddle, business rates expert at Deloitte Real Estate, welcomed the move.
Highlights from the Spring Statement 2018
TODAY Chancellor Philip Hammond updated the House of Commons on the health of the nation's economy. Here are the key points:
The economy is growing faster than expected - The Office for Budget Responsibility has upgraded its growth figures to 1.7 per cent in 2017 and 1.5 per cent this year – both higher than previously forecast in last November’s Budget.
Wages could rise above inflation - Inflation is forecast to fall this year, so by Autumn real incomes will be on the rise again.
Cut down on plastic waste - A consultation will be held to look into tackling Britain's huge plastic waste pile. This could mean more tax slapped on crisp packets or deposit returns schemes.
The end of the £50 note, 1p and 2p coins - A consultation has been launched to look into the future of cash and it could mean the end for some coins and notes.
Thousands more affordable homes - An extra £1.67billion for 27,000 affordable homes over the next five years and double the financial support for small house builders to £220million.
£80million boost for small businesses - Help for small businesses including bringing forward a rates revaluation.
Tax break for van drivers - Vehicle excise duty (VED) rates would be reviewed for commercial motors. Drivers who buy the “cleanest” new models are likely to be offered cheaper road tax rates in the future.
Here's how the Spring Statement affects you.
He said: "The Chancellor has announced today that the Government would bring forward the next business rates revaluation from 2022 to 2021, and move thereafter to three yearly revaluations for Business Rates.
"Such a move would make the system more responsive to economic changes and ensure that business ratepayers’ bills are more quickly aligned with economic circumstances."
Hammond also announced a consultation on potential changes to a tax-break called Entrepreneurs' Relief (ER).
First introduced in 2008, the break provides a 10 per cent rate of Capital Gains Tax for gains made by shareholders.
But currently, business owners can't retain the relief if their shareholding in the company falls below 5 per cent.
Read more on the Spring Statement 2018
The idea behind it is that entrepreneurs who have boosted the economy with their business should receive a tax break.
But the Government is worried that when the company raises new funds by issuing new shares, the entrepreneur could see their stake in the firms "diluted" to below the 5 per cent threshold - and lose the tax break - even though they haven't sold any shares.
The consultation, which was first announced in the Autumn Budget, will run until May 15.
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