- The government has been reviewing business rates for a while, with the stated intention to simplify and modernise the system. The below relates to business rates in England only.
- At the Autumn Statement 2023, as part of business support measures, it was announced that the small business rates multipliers would be frozen for 2024/25 at 49.9p and that the 75% business rates relief for eligible retail, hospitality and leisure businesses up to a limit of £110,000 per business would be extended to 31 March 2025.
- A consultation titled Business Rates Avoidance and Evasion ran until September 2023, to investigate the scope and scale of avoidance, evasion and poor rating agent behaviour in the business rates system, and potential methods to tackle it. The government has also launched a consultation on adopting a general anti-avoidance rule in England and is committing to improved communication to raise awareness of “rogue” business rates agents.
- Following a 2022 consultation on digitalising business rates (DBR), HMRC and the Valuation Office Agency (VOA) intend to design a single business rates service on gov.uk that will allow ratepayers to provide the data needed for DBR and the VOA new compliance regime.
- At Spring Budget 2024, it was announced that eligible film studios in England will receive a 40% reduction on gross business rates bills until 2034, to be implemented as soon as possible, with bills backdated to 1 April 2024.
- Timing: the small business rates multiplier freeze and the business rates relief extension for eligible retail, hospitality and leisure businesses will cease on 31 March 2025. Film studios relief will be implemented as soon as possible, with bills backdated to 1 April 2024.
Resources (click to open)
- Spring Budget 2024 (HM Treasury, March 2024)
- Business Rates Avoidance and Evasion (HM Treasury, DLUHC, consultation, July 2023, response, March 2024)
- Business rates relief | TaxScape | Deloitte (November 2023)
- Non-Domestic Rating Act (introduced March 2023)
- Consultation on disclosure: sharing information on business rate valuations (Valuation Office Agency, consultation, March 2023)
- Digitalising Business Rates: connecting business rates and tax data (HMRC, consultation, July 2022, response, March 2023)
- Digitalising Business Rates - Impact Note (HMRC, March 2023)
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