UK Mulls Property Tax Reforms to Small Business Expansion

The UK will explore changes to commercial property tax relief aimed at helping small businesses open new premises, the Treasury said Thursday.

UK Chancellor Rachel Reeves is considering changes to small business rates relief, or SBRR—a discount on business rates, the commercial property tax, currently available for those occupying a single property, according to an official statement.

Under the existing system, the SBRR creates “sudden jumps” in tax liabilities creating so-called “cliff-edges” when a property’s value exceeds £12,000 ($16,213). Businesses who take on a second property cannot access the SBRR, discouraging expansion, the government said.

“The government ...