In this third part of our Budget breakdown series of advice blogs, we look in detail at the changes the Chancellor announced to business rates.
Following the temporary reliefs and support measures introduced during the Covid-19 pandemic, the Autumn Budget 2021 (published on 27 October 2021) announced several further support measures relating to business rates in the coming years.
The key points announced were:
- The business rates multiplier is to be frozen again for the year 1 April 2022 to 31 March 2023.
- For 2022/23 a new temporary business rates relief of 50% (up to a maximum of £110,000 per business) will be available for eligible properties used in the retail, hospitality, and leisure industries.
- Taking effect from 2023 (and to be reviewed in 2028) any eligible improvements which increase the rateable value of existing properties, will be eligible for 100% improvement relief from business rates for the first 12 months.
- From 1 April 2023 until 31 March 2035, there will be business rate exemptions for eligible plant and machinery used in the generation and storage of on-site renewable energy e.g., solar panels.
Other changes to business rates
The frequency of business rates revaluations will increase from every 5 years to every 3 years from 2023.
The government also confirmed that they shall continue to explore the pros and cons of introducing a UK-wide online sales tax (OST) and will publish a consultation shortly. If an OST was introduced, the funds generated would be used to help reduce business rates costs for retailers in England.
If you have any questions about the above reliefs or would like any further advice, please contact us and our tax team will be happy to help you.
You can also read our other Budget breakdown blogs:
Part two – Budget breakdown 2021: R&D Tax Reliefs