Funding update – business rates
11 October 2016Add to My Folder
Despite persistent lobbying from the Early Years sector, it looks likely that nurseries across the country will not be exempted from the upcoming business rate rises. Take a look at our handy article and check out the gov.uk calculator to see how your setting might be affected.
What are business rates?
Business rates are a tax that’s applicable to all non-domestic buildings, including schools and nurseries. In England and Wales, these rates are calculated based on the building’s ‘rateable value’. This ‘rateable value’ is in turn calculated from the property’s annual rental value at the last valuation (currently April 2008) or the cost of building a new, similar facility at that time.
This ‘rateable value’ is then multiplied by the annual business rates multiplier that the Government sets. This final figure is often subject to deductions and reliefs depending on the business – some deductions are available for schools, for example.
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