Automatic rate relief 'not possible'
Jan 23 2009
Automatic rate relief for small companies is not possible, according to Communities and Local Government (CLG).
The spokeswoman from the government department, which deals with national policy at a local level, says the system would not be possible in practice.
Her comments follow a recent campaign from the Federation for Small Businesses, which was aimed at introducing a private member's bill on the issue.
It was working with Peter Luff, conservative MP for mid Worcestershire and chairman of the business and enterprise committee, to grant the relief automatically, rather than companies having to apply for it.
However, the CLG representative says the system would not work, commenting: 'Not all small properties are occupied by small businesses and a business may not qualify for relief if they occupy more than one property.'
Rate relief is applicable to companies when the rateable value of their property is less than £15,000, or £21,500 in London.
The spokeswoman says while automatic relief is not possible the government has introduced a number of measures to make it easier for businesses to claim.
She states that applications can now be carried from one year to the next and adds that local councils should promote the scheme, but companies will still have to apply for the relief in the first instance.
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