ACCA Advanced Taxation (ATX) Practice Exam

True or False: There is no Small Business Rate Relief (SBA) for old buildings.

1. True

2. False

3. Only applies to residential buildings

4. Only applies to buildings over 100 years old

The correct answer is: True

Small Business Rate Relief (SBA) is designed to assist small businesses by providing a reduction in business rates, which are taxes generally applicable to commercial properties. The rationale behind the provision is to support small enterprises, ensuring they can thrive without the burden of high overhead costs from taxation. The assertion that there is no Small Business Rate Relief for old buildings is accurate. The relief is not predicated on the age of the building but rather on its use as a small business premise and its rateable value. Consequently, older buildings, if they meet the criteria specified for small business rate relief, do not automatically disqualify themselves from receiving this relief. Thus, the statement is true because older buildings specifically do not have a separate provision for relief under the Small Business Rate Relief scheme, regardless of their historical significance or age. The essence of the SBA program focuses more on the size and value of the business rather than the characteristics of the building itself.