3rd December 2014
George Osborne is planning to reform business rates and the stamp duty system in his Autumn Statement this afternoon, reports suggest.
According to The Financial Times, the Chancellor will announce £1 billion of support for small businesses and may suggest reforms to the “slab” system of stamp duty whereby the rate homebuyers pay jumps significantly at certain property price thresholds.
It is thought that the Government could announce a move towards a system that is soon to be adopted in Scotland whereby the rate of tax charged at each threshold only applies to the proportion of the home’s value over the threshold rather than the whole property price.
George Osborne is also expected to announce a review of business rates, which are based on the rental value of the property a business uses, to help small companies compete with online retailers, although this is not expected to reach a conclusion before the next election.