Business rates relief

Within business rates legislation are a number of available reliefs.

In this section you will be able to find out the relief schemes available for your business and the qualifying criteria you will need to meet.

You may be able to get business rates relief. This is sometimes automatic, but you may need to apply.

For further information and guidance, please take a look at our guidance document below.

Business Rate Relief Guidance

Changes to Business Rates announced in the Autumn Statement 2023

2024/25 Retail, Hospitality and Leisure (RHL) relief scheme

At Autumn Statement 2023 the Chancellor announced the extension of the retail, hospitality, and leisure properties, worth an estimated £2.4 billion in 2024/25.  The 2024/25 Retail, Hospitality and Leisure (RHL) relief scheme will provide eligible, occupied, retail, hospitality, and leisure properties with 75% relief, up to a cash cap of £110,000 per business. Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England. Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash caps. The RHL relief scheme guidance provides local authorities with information about the intended operation and delivery of the policy. The Government has published guidance setting out the eligibility criteria for the scheme. This guidance can be found: Business Rates Relief: 2024/25 Retail, Hospitality and Leisure Scheme - GOV.UK (www.gov.uk)

2023/24 Supporting Small Business (SSB) relief scheme

The Chancellor also announced that a new Supporting Small Business (SSB) relief scheme which will cap bill increases at £600 per year for any business losing eligibility for Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation. The Government has published guidance setting out the eligibility criteria for the scheme. This guidance can be found at 
https://www.gov.uk/government/publications/business-rates-relief-2023-supporting-small-business-relief-local-authority-guidance

For 2022/23 :-

Local Newspaper Relief

You could be entitled to relief if your property is used as an office for journalists and reporters of a local newspaper.  This is £1500 per year for eligible properties.

PLEASE NOTE:- This relief will end on 31st March 2025.

Please contact the Business Rates team if you would like to apply.  To check if you are eligible please see the following link and then:-

https://www.gov.uk/apply-for-business-rate-relief/local-newspaper-relief

Heat networks relief

You can get heat networks relief if your property is only used or mainly used as a ‘heat network’.

A heat network supplies heating or cooling to other properties from a central source. To be eligible, the heat network must:

  • take its energy from a low carbon source
  • supply heating and cooling to other properties - for example, homes, shops, public buildings, hospitals and office

The heat network must not supply heat or cooling for industrial use - for example, to create products in factories.

You will not pay business rates if your property is eligible for heat networks relief.

Contact the Valuation Office Agency (VOA) to check if your property is eligible for heat networks relief.

Report changes to make sure you’re paying the right amount and do not get a backdated increase in your bill or overpay your bill.  Contact the VOA if the property is no longer only or mainly used as a heat network.

 

Improvement Relief

Following the business rates review during 2020 and 2021 the Government announced it would be introducing a new Business Rates Improvement Relief.

This recently became law with the Non-Domestic Rating (Improvement Relief) (England) Regulations 2023.

Improvement Relief (from April 2024) will support businesses wishing to invest in their property. It will ensure that no ratepayer will face higher business rates bills for 12 months as a result of qualifying improvements to a property they occupy.

Following the Review of Business Rates, the Government announced its intention to bring forward the Improvement Relief Scheme.

To qualify for this, any works carried out should increase the area of any building in or on the hereditament, improve the physical state of the hereditament, or add to it rateable plant and machinery. Therefore, neither a newly constructed hereditament, nor a refurbished hereditament will qualify.

A change of use alone or addition of land will not qualify.

The same ratepayer must have been in occupation of the hereditament on each day since the qualifying works commenced.

The relief commences 1 April 2024 and applies to works completed by 31 March 2028.

For further details about the scheme please read use the weblink:

www.gov.uk/government/consultations/business-rates-improvement-relief-draft-regulations/business-rates-improvement-relief-draft-regulations

 

 

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