The Autumn Budget has been announced, with many updates, including a change to the business rates system.
In order to take pressure off many businesses, the Government is planning to review and improve the business rates system. This was originally announced in the 2020 Budget. To give an insight into their intentions, the Government published an interim report in March 2021. The full report followed on October 27, 2021.
This report summarised the Government’s new commitments, which are:
Introducing a new temporary business rates relief, for retail, hospitality and leisure properties on high streets including gyms, hotels and bowling alleys recovering post-pandemic. 90% of these businesses will receive at least 50% relief off their business rates bills in 2022/23. This amounts to support worth more than double the relief that was announced pre-COVID for the 2020 to 2021 financial year.
Freezing the multiplier, the multiplier is a fixed figure set by the Government used to work out the amount of business rates payable. By freezing the multiplier, the burden of business rates will be cut for 2022 to 2023.
A new relief to support investment in property improvements. By introducing this relief, businesses can improve their properties to be better suited to their customers and employees.
Three-yearly revaluations from 2023. To make the system fairer, revaluations will be more frequent.
Extension of the transitional relief and supporting small business scheme for 2022 and 2023¸ to protect small businesses ahead of the revaluation from significant bill increases.
New measures introduced for green investment, in an urge to support green investment such as wind turbines, battery storage and other green plant and machinery like electric car charging points, will be eligible for exemptions. As well as low-carbon heat networks receiving 100% relief when they have their own rates bill.
The aim is for the new business rates measures to support businesses in England.
David Cairns, Tax Partner at Hawsons, said:
“It is good to see positive change from Budget to Budget with a vision into the future, the business rates are just one of many examples of this. Working first-hand with businesses who have struggled post-pandemic, and to be able to see the transition of them getting back on their feet when the government introduce new reliefs and exemptions is reassuring. It is certainly worthwhile considering the benefits of the changes in the business rates system, whether you’re a small business, charity or retailer, you could qualify and pay less. Where Hawsons can, we will guide you and support you with some tax planning advice.”
Find out more, contact Hawsons Chartered Accountants on 01604 645600.
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