Scottish firms handed business rates exemption

Date: 2nd April 2009

Thousands of small firms in Scotland will be exempt from paying business rates following a government announcement.

As part of the Small Business Bonus Scheme, companies with a rateable value of less than £8,000 will have to pay no taxation on their non-domestic properties, finance secretary, John Swinney revealed.

As a result of the initiative, the average amount paid in business rates by small Scottish enterprises will be approximately £1,400 less than before.

Mr Swinney commented: "At a time when businesses face the challenge of rising costs, the government is acting to reduce taxes.

"The Small Business Bonus scheme will free tens of thousands of them from the burden of business rates."

He added that the programme would provide "vital help" for Scotland's small business community.

Meanwhile, Chancellor Alistair Darling has announced that firms will face a two per cent rise in business rates this year, rather than the planned five per cent.