rowland-burkitt

Business Rates: Key Dates Ahead of the End of the 2023 Rating List

Wed, 04 Feb 2026 08:44:09 GMT

Business Rates: Key Dates Ahead of the End of the 2023 Rating List

The 2023 Rating List determines business rates liability from 1 April 2023 to 31 March 2026. With the end of the current list approaching, this article highlights the key dates and actions that occupiers and owners of commercial property should be aware of.

End of the 2023 Rating List

The current Rating List will close on 31 March 2026. From 1 April 2026, the new 2026 Rateable Values will take effect, setting business rates liabilities for the next three-year period, running to 31 March 2029.

The deadline to submit an appeal against a 2023 Rateable Value is 31 March 2026. However, given the time required to complete the necessary steps beforehand, ratepayers are advised to act well in advance.

Check, Challenge, Appeal (CCA) Registration

The business rates appeal process operates under the Check, Challenge, Appeal (CCA) system. Before an appeal can be made, ratepayers must register via the Valuation Office Agency (VOA) online portal.

Rowland Burkitt provides clients with a step-by-step registration guide, and the VOA has also published a short explanatory video, available here: https://www.youtube.com/watch?v=J_IPOAfZ0sY

In summary, the registration process involves:

Registering via a Government Gateway account and confirming your identity
Registering the property (typically by uploading a business rates bill)
Appointing an agent, if you wish to instruct a surveyor to act on your behalf

Key Deadlines to Note

There are several important lead-in times that ratepayers should factor in:

Property registration can take up to 15 working days to complete
For some properties, a detailed valuation must be requested and received before an appeal can be submitted — this can take up to 20 working days

Based on these timeframes, the latest recommended dates to begin registration are:

10 February 2026 – where a detailed valuation is required
10 March 2026 – where a detailed valuation is not required

Conclusion

While the process can sometimes be completed more quickly, many ratepayers are likely to miss the appeal deadline by leaving matters too late.

Now is therefore the time to seek advice. If you require assistance with your business rates, please feel free to contact us on 0113 286 7006 or 01609 765992.

Budget 2025 - Key Business Rates Announcements

Thu, 27 Nov 2025 08:39:52 GMT

Budget 2025 - Key Business Rates Announcements

The key change announced in yesterday's Budget is the replacement of Retail, Hospitality & Leisure (RHL) Relief, which reduced business rates bills for eligible properties by 40% in 2025/26, with five new multipliers for non-domestic properties in England.

New Multipliers (from 1 April 2026):

Small Business RHL (RV < £51,000): 38.20p
Standard RHL (RV £51,000–£499,999): 43.00p
Small Business non-RHL (RV < £51,000): 43.20p
Standard non-RHL (RV £51,000–£499,999): 48.00p
Large Property (RV ≥ £500,000): 50.80p

From 1 April 2026, permanent lower multipliers will apply to RHL properties with a Rateable Value below £500,000. Properties with a Rateable Value of £500,000 or above, including large retailers, supermarkets and major distribution units, will be charged the new higher multiplier of 50.8p in the £.

Retail, Hospitality and Leisure

The new, lower RHL multipliers for 2026/27 will follow similar eligibility criteria to those used in 2025/26 but will now be governed by legislation. Whilst the higher multiplier will impact those properties with Rateable Values of £500,000 or higher, the removal of the £110,000 annual cash cap will be welcome news for clients with larger retail portfolios, with more properties potentially benefitting from the lower RHL multipliers.

Other Key Announcements

While the new multipliers represent the most significant change, several measures have been introduced to help cushion the impact of the transition from the 2023 Rating List to the 2026 Rating List, including:

A transitional relief scheme to cap increases in business rates bills.
A supporting small business scheme to cap increases for those losing some or all Small Business Rates Relief. The supporting small business scheme will also apply to ratepayers losing RHL Relief.

Draft 2026 Rating List

Alongside these measures, the Valuation Office Agency has released Draft 2026 Rateable Values, reflecting market conditions as at 1 April 2024.

These new Rateable Values come into force on 1 April 2026 and will form a major part of determining liabilities for 2026/27. Whilst we are only beginning to review our clients’ properties, early indications suggest that most have seen at least a slight increase in their Rateable Values.

Conclusion

The measures announced have not taken the industry by surprise. The clear intention is for larger businesses, such as major retailers, supermarkets and distribution warehouses, to take on a greater share of the overall rates burden.

If you require advice on how these changes may impact your business, please do not hesitate to contact us.

Business Rates: Preparing for the 2026 revaluation

Tue, 30 Sep 2025 08:36:05 GMT

Business Rates: Preparing for the 2026 revaluation

In this article, we outline the key milestones ahead for what promises to be an important year of change for business rates liabilities.

The next business rates revaluation will take effect on 1 April 2026, based on rental values as at 1 April 2024. The Draft 2026 Rating List is expected around late November 2025 / early December 2025, likely timed to coincide with the Autumn Budget announcement - providing ratepayers with their first look at their new Rateable Values (RVs).

2026 Revaluation: What to Expect

Initial market indicators suggest average RV movements could be:

Retail: down by around 1–3%
Offices: up by approximately 5–10%
Industrial / Logistics: up by around 25–30%

Please note there will be locations which have bucked this trend and business rates liabilities will largely depend on the multipliers and reliefs applied. A lower multiplier will apply to retail properties, while a higher multiplier will apply to properties with an RV of £500,000 or greater. The exact figures will be confirmed in the Autumn Budget.

Some key considerations to come from the Transforming Business Rates : Interim Report is a proposed 'sliced' approach for calculating business rates liability (i.e. similar to how income tax is calculated) and, for Small Business Rates relief, the potential removal of the condition to have only one commercial property.

Once the multipliers and reliefs are confirmed and Draft 2026 Rating List published, we will be able to advise on your specific business rates liability from 1 April 2026 onwards.

2023 Rating List: Appeals Still Open

The current Rating List, based on rental values as at 1 April 2021, remains in effect until 31 March 2026. This means there is still time to appeal existing valuations if you believe they are inaccurate.

Appeal Timelines: What to Expect

Current timescales for the appeal process are typically:

Checks (fact verification): resolved within 1–6 months
Challenges (valuation disputes): progressing within 6–12 months after submission

Note that these timescales are often extended due to increased workloads at the Valuation Office Agency (VOA) and a growing number of appeals. Many clients will soon have appeals active across the 2017, 2023, and 2026 Rating Lists.

Although the appeal process can take time, any reductions achieved are backdated, with bills recalculated and, where applicable, refunds issued by your Local Authority.

Why Act Now

With the 2026 revaluation on the horizon and the appeal window still open for the current list, now is the time to review your business rates position from 1 April 2023 to 31 March 2029.

How We Can Help

As part of a comprehensive business rates review, we:

Inspect each property
Review leases and relevant rental evidence
Assess comparable properties in the Rating Lists
Guide you through the Check, Challenge, Appeal (CCA) process
Advise on the most effective strategy to minimise your business rates liabilities

Get in Touch

If you would like to understand what the 2026 revaluation and current appeal opportunities mean for your property, please get in touch.

Do you have a Lease Renewal Coming Up in 2025/26? Should You Plan Now or Later?

Thu, 11 Sep 2025 17:22:17 GMT

Do you have a Lease Renewal Coming Up in 2025/26? Should You Plan Now or Later?

Introduction

Commercial lease renewals often sneak up on landlords and tenants alike and by the time they’re upon the parties it’s often too late to take full advantage of the options available. If you’ve got a commercial lease renewal due in 2025-2026, a key question is: should you start planning now, or can it wait?

This article outlines why now is almost always the better answer - whether you’re a landlord or a tenant.

Why Timing Matters in Lease Renewals

Lease renewals are deceptively complex. They’re not just about agreeing a new rent figure, amendments to the following terms are common and they all require careful consideration from both sides:-

Rent reviews
Lease term lengths
Break clauses
Repair and reinstatement liabilities
Service charge arrangements
Energy efficiency obligations (such as MEES compliance)
Use clauses and subletting provisions

Leaving things until the last minute often means reacting to the other party’s agenda, rather than shaping your own.

For Landlords - Protect Value and Minimise Vacancy Risk

If you’re a landlord, starting early helps you:

Assess the tenant’s intentions - are they staying, going, or negotiating?
Consider alternative strategies - re-letting, redevelopment, or repositioning the asset.
Appoint advisors and get valuations - supporting your negotiating position with up-to-date market evidence.
Allow time for Section 25 notices under the Landlord and Tenant Act 1954 (if the lease is inside the Act), which must be served correctly and with statutory lead times.

Waiting until the lease expiry date is on the horizon could result in a rushed negotiation or, even worse, a vacant unit and avoidable costs.

For Tenants - Secure Certainty and Negotiate Favourably

Tenants often assume the landlord holds all the cards - but early planning can shift the balance:

Understand your rights under the 1954 Act if your lease is “inside the Act” - you may have an automatic right to renew.
Review your business needs - do you need more space? Less? More flexibility?
Start discussions early to lock in favourable terms, particularly if market rents are rising.
Negotiate on improvements or repairs as part of renewal, rather than absorbing those costs post-agreement.

You’ll also want time to assess the EPC and repair obligations - especially if you’re inheriting responsibility for a property that may not meet modern standards.

EPCs, ESG and Energy Regulations

From 2027 onwards (subject to government decisions), commercial properties may need to hit EPC C or above to be legally let. If your property is currently E or below, this could:

Affect your ability to renew a lease
Create a negotiation point for rent reductions or improvement works
Trigger costs or works before the lease can continue

Starting lease renewal discussions early allows time to address these issues proactively.

So… Should You Plan Now or Later?

In almost every case: plan now.

Whether you’re a landlord or tenant, early engagement leads to better outcomes. You’ll reduce risk, control costs, and have time to consider your options calmly - not under pressure.

If you’re approaching a lease renewal and want to understand your options in terms of:-

Serving notices
EPCs
Renegotiating existing terms

Then please get in touch.

Business Rates : Forward Look

Mon, 10 Mar 2025 17:18:07 GMT

Business Rates : Forward Look

The Government have recently published a policy paper called ‘Business Rates: forward look’. Whilst many businesses will be grappling with new 2025/26 business rates bills landing through the post, this paper looks forward to the 2026/27 billing year and beyond.

The Government’s aim is to create a business rates system that supports investment and is fit for the 21st Century, with the following steps announced:-

Multipliers

It has been confirmed that lower multipliers for Retail, Hospitality and Leisure (RHL) properties will be funded through the introduction of a Large Multiplier (for all properties with a 2026 Rateable Value of £500,000 and higher). This is intended to be a re-balancing act. In order to assist struggling retailers, the Government wants to increase the business rates liability for ‘online giants’; however the Large Multiplier is not restricted to only include distribution warehouses but can apply to any type of property e.g. Large shops, Schools etc.

The new 2026/27 multipliers will be as follows:-

Small business multiplier (non-RHL properties & RV below £51,000)
Small business RHL multiplier (RHL properties & RV below £51,000)
Standard multiplier (non-RHL properties & RV between £51,000 to £499,999)
Standard multiplier (RHL properties & RV between £51,000 to £499,999)
Large multiplier (all properties RV £500,000 and above)

Simply put, Annual Business Rates liability = Multiplier x Rateable Value (after this reliefs are applied) and therefore the multiplier or reliefs adopted have a significant impact on business rates liability.

This paper confirms the Large Multiplier can be no more than 10p higher than the Standard Multiplier and the RHL multiplier can be no lower than 20p less than the Small Business Multiplier.

The introduction of the new multipliers will tie in with the ending of the current Retail, Hospitality and Leisure Relief scheme which for the 2025/26 billing year provides 40% relief to eligible properties. The eligibility criteria for the new multipliers, to be set through secondary legislation, will broadly reflect the existing RHL relief criteria.

Timeline

The Government has provided a timeline for the legislative process and further stakeholder engagement as follows:-

Q4 2024 – Q1 2025 – Policymaking and legislative process / initial stakeholder engagement across all sectors and policy making
Q2 2025 – Q3 2025 – Policymaking and legislative process / further stakeholder engagement on specific reform options
Q3 2025 – Q4 2025 – Budget 2025: Announcement of all multiplier rates for 2026-27 and details of Transitional Relief Scheme / Budget 2025: Announcement of reforms

Conclusion

The recent changes are probably best described as a ‘Smoke and Mirrors’ approach. For the 2025/26 billing year many small Retail, Hospitality & Leisure properties have seen their relief reduce from 75% to 40%, more than doubling business rates liability from one month to the next.

The Government’s policy paper does not help smaller retail/leisure businesses in the short term. This is an announcement on multipliers that have not yet been set against 2026 Rateable Values, that have not yet been decided and will therefore provide little comfort for businesses struggling to settle their current bills.

We do expect the Valuation Office Agency will see an influx of business rates appeals for this class of property and if you need any assistance with reviewing your 2025/26 bills or with the appeals process then please don’t hesitate to get in touch.

Autumn Budget

Fri, 01 Nov 2024 15:42:32 GMT

Autumn Budget

We've all been nervously waiting for the announcements within the Autumn Budget relating to business rates and we've summarised the key changes in this article.

Levelling the playing field

In our last article, Business Rates Reform, we outlined how the retail sector has been lobbying for change and Rachel Reeves confirmed a long-term commitment. This comes in the form of adopting a permanent lower multiplier for retail and leisure properties from 1st April 2026. To make sure the tax cut is fiscally sustainable, the government intends to fund this measure through a higher multiplier for the most valuable properties (i.e. with a Rateable Value of £500,000 or higher). The assumption is that most distribution type properties would fall above this value and therefore looks to fulfil Labour's manifesto promise of levelling the playing field between online giants and high street businesses.

Multiplier 2025/26

As expected, the multiplier for properties with Rateable Values below £51,000 will remain at 49.9p in the pound and for properties with Rateable Values of £51,000 and higher the multiplier will increase in line with inflation which equates to a rise to 55.5p in the pound from the existing 54.6p.

Retail, Hospitality & Leisure Relief

In the short term however retail properties will see an increase in their bills, Retail Hospitality and Leisure Relief will be reduced from 75% for the 2024/25 billing year to 40% for the 2025/26 billing year (capped at £110,000 per annum per business with a rolling 3 year cap of £315,000). Whilst this will have limited impact on larger portfolios, for smaller independents it will significantly increase their annual business rates liability e.g. an independent pub with a 2023 Rateable Value of £40,000 would see an eye watering 63% increase in their annual business rates liability. The recent lobbying from retail and leisure businesses therefore looks to have fallen on deaf ears.

Duty to Notify

From 1st April 2026 we were expecting that each ratepayer in England & Wales (this would include circa 700,000 of ratepayers who currently pay no business rates at all due to being in receipt of business rates reliefs), to be required to complete an annual return confirming changes that have occurred at their property along with the proposed 'Duty to Notify'. This duty would require ratepayers to update the Valuation Office Agency of any changes to their rent, trade or anything that could impact their Rateable Value - an onerous obligation to say the least.

Good news that the Government have confirmed that "due to system-wide complexity of implementing these reforms" the new duties will effectively be voluntary until the official rollout in April 2029.

Conclusion

Whilst there have been clear losers in recent announcements, including Private Schools (losing Charitable relief) and smaller retail & leisure businesses (losing much of their Retail Relief), there haven't been any significant surprises in this Autumn Budget.

Whilst there may be more changes on the horizon, these are likely to happen more gradually than first expected whilst the new Government grapple with reforming a very efficient tax base.

If you would like your say on what you think should happen with business rates going forward, you can get in touch with the Government here (by 15th November 2024): transformingbusinessrates@hmtreasury.gov.uk

Business Rates Reform

Thu, 12 Sep 2024 17:13:53 GMT

Business Rates Reform

In Labour’s manifesto there was a promise to “replace the business rates system, with a new system that will level the playing field between the high street and online giants”. The question that has been on everyone’s mind recently, is what will happen to business rates?

We’ve explored a few of the Governments’ options below:-

Ditch the reliefs and apply a different multiplier to retail and industrial properties

The CBI recently published a report which suggests to “change the application of business rates multipliers to a banded (‘slice’) approach”.

Around 700,000 properties currently pay no business rates at all however will soon be required to engage with the business rates system through the new ‘Duty to Notify’ obligations. To spread the burden, it may be that smaller businesses that are currently in receipt of Small Business Rates Relief will be required to pay business rates on a low multiplier. For retail properties it is expected a lower multiplier may be applied compared to industrial/warehouse uses.

The CEO of Sainsburys recently called for a 20% cut to prevent shops from closing and thousands of retail jobs being lost. Whilst the retail sector has understandably been lobbying on business rates reform, retail properties can currently obtain a 75% deduction to their 2024/25 business rates bills due to Retail, Hospitality and Leisure Relief (which is capped at £110,000 per year per businesses) and Rateable Values of retail properties have mostly seen decreases compared to the industrial sector between the two rating revaluations.

If the Government do go ahead with a sliced approach to multipliers, it will be interesting to see what reliefs they keep and whether small businesses will be brought into paying business rates.

Replace Stamp Duty, Council Tax and Business Rates with a Land Value Tax

The concept behind a Land Value Tax (as put forward by the New Economics Foundation), is that the land value is derived from “their location rather than the quality of the development sitting on top of them”. Whilst it is widely accepted that business rates are currently too complex, one of its strengths is that it is underpinned by legislation and years of case law which provide clarity as to how a valuer should arrive at a Rateable Value. Business rates also historically have a very high collection rate of around 98% and therefore a new tax based on land values would need to provide the same clarity and efficiency in its collection. Whilst it may be unlikely a Land Value Tax will be introduced anytime soon; it would certainly hit the headlines as providing wholesale reform.

Delay reforms to CCA

Whilst we are currently set for the new ‘Duty to Notify’ to be released in time for the 2026 Rating List, anyone who has been involved with a recent 2023 rating list appeal will appreciate that the current Check Challenge Appeal (CCA) system is struggling to efficiently manage most cases in a timely fashion with a large number of Challenges being deemed as ‘unlawful’ or ‘incomplete’ due to technicalities.

It is questionable whether the Valuation Office Agency or the 700,000 of ratepayers who currently pay no business rates at all are ready for a new system. The CBI propose that the “current timelines are unrealistic and will create an unmanageable administrative burden”, we tend to agree.

Conclusion

Whilst many advocate for business rates reform, what this means will be different for each business or organisation and it will be a challenge for the new government to fully consider the views of different stakeholders. With recent talk of a £22 billion ‘black hole’ set against a very efficient tax revenue base of around £30 billion pounds a year, it may be that we will be waiting a little while longer for significant business rates reform.

Spring Budget

Thu, 07 Mar 2024 15:38:19 GMT

Spring Budget

In yesterday’s Spring Budget, chancellor Jeremy Hunt announced various measures and in this article we have focused on what this means for business rates:-

Retail, Hospitality & Leisure Relief

As previously announced in the Autumn Statement, eligible retail, hospitality, and leisure businesses will continue to receive a 75% deduction to their business rates liability which is set at a cap of £110,000 per business. There was no confirmation this relief would be extended beyond April 2025.

Uniform Business Rate (UBR)

The UBR or Uniform Business Rate is used to calculate your business rates liability from your Rateable Value.

Although properties below a Rateable Value of £51,000 have had there UBR frozen at 49.9p, those with a higher Rateable Value of above £51,000 will see this rise by 6.7% from 51.2p to 54.6p in the pound, despite the fact the Chancellor announced inflation is forecast to be below 2% in Q2 2024.

Film Studios

A 40% relief will be introduced for eligible film studios in England for 10 years from 1 April 2024 . This will be welcome news for many film studios who have seen substantial increases between the 2017 and 2023 rating revaluations.

Empty Rates Relief

Empty rates mitigation is an evolving topic, which we have previously discussed in our January article Box Shifting. The period for which a property must be occupied to receive a new Empty Rates relief period, has increased from 6 to 13 weeks from 1st April 2024. In short, this will increase business rates liability for those who have long term empty properties and has been implemented to deter property owners from carrying out empty rates mitigation schemes.

‘General Anti-Avoidance Rule’

The Government have published responses to the July 2023 Business Rates Avoidance and Evasion Consultation which outlines a new ‘General Anti-Avoidance Rule’ which will look to “tackle emerging avoidance schemes as they materialise”, further information will be provided in a separate consultation.

Other measures include improving information sharing between Local Authorities, the Valuation Office Agency and HMRC to combat business rates evasion and improving communications with ratepayers to assist them in choosing the right surveyor. The Valuation Office Agency have already been busy social media campaigning on this topic and have published a new set of agent standards.

Conclusion

Whilst we were not expecting too many new measures, it is disappointing that the main takeaways are an increase in business rates liability for those with long term empty properties along with the announcement of yet another business rates consultation.

The Government are currently tinkering around the edges with regards to business rates and with inflation falling surely a more popular and simpler measure would be to reduce the UBR.

Box Shifting

Wed, 31 Jan 2024 17:09:19 GMT

Box Shifting

The practice of empty rates mitigation involves moving boxes in and out of a property. This creates short periods of occupation which trigger new rates free periods and allow the ratepayer to reduce their rates liability. This is a strategy often adopted for long term empty properties. The cycle of emptying and occupying a property can continue indefinitely and in turn significantly reduce business rates liability, normally by 75-80% per annum.

In this article, we explore the background to this practice along with potential future changes:-

Background

Rating can be traced back to the Poor Relief Act 1601, which was introduced under Queen Elizabeth 1st and the act taxed property if occupied.

Move forward to 1966 and an unoccupied or empty rate was introduced. Move forward to the present day and if a property is empty, the local council can award Empty Rates Relief for a period of 3 months (or 6 months for industrial property). However, after this period of relief the owner of the property is liable to pay full business rates on their empty property.

Case Law

Box shifting has its roots in the case of Makro Properties v Nuneaton and Bedworth Borough Council [2012]. This involved a cash and carry warehouse where only 0.2% of the floorspace was used for the storage of pallets of documents.

Empty rates mitigation schemes commonly rely on short periods of occupation (42 days) followed by periods of vacating a property to trigger a new empty rates free period, a cycle which can currently continue indefinitely.

Public Health England v Harlow District Council [2021] set out a twelve point checklist to assist ratepayers and local authorities in determining whether a property is indeed occupied and one point that stands out is that “it does not matter if the possessor’s predominant or sole motive is mitigation of or exemption from rates liability”.

Business Rates Avoidance and Evasion Consultation

The Government recently consulted on business rates avoidance and have proposed various potential measures, as follows:-

Increasing the 42 occupation rule to 3-6 months
Providing a limited number of empty rates free periods in a given amount of time
Placing additional conditions on the meaning of occupation e.g. more than 50% of the floor space would need to be occupied

Conclusion

There are arguments on both sides.

In the current climate, post Covid-19, in particular retailers but also offices are still recovering. Properties don’t usually fall vacant by choice and by imposing more costs onto a property and the owner this will only hinder property markets and ultimately our pensions.

In the other camp, lead by the organisation known as 'Ban Box Shifting', statistics have been put forward such as councils losing 1% of their annual income (or £250 million) which could fund 2,000 new council homes. Despite the fact the government itself admits “it is not possible to accurately determine the financial loss resulting from abuse of the business rates system.” the cause of banning box shifting has been gaining traction with support from multiple MP’s and councillors.

Whichever side of the argument you are on, it will certainly be interesting to see what legislative changes are on the horizon.

Understanding your Business Rates Bill

Tue, 23 Jan 2024 16:58:31 GMT

Understanding your Business Rates Bill

From 1st April 2024, rates payers across the country will receive revised business rates bills to cover the period from 1st April 2024 to 31st March 2025. In this article, we have outlined some key considerations:-

Step 1 - Multipliers

Business Rates liability is first calculated by multiplying the ‘multiplier’ by your 2023 Rateable Value.

2023 Rateable Value

Your 2023 Rateable Value should be shown on your bill however you can also check your business rates valuation on the Valuation Office Agency’s website here. If you think your 2023 Rateable Value is inaccurate you have the right to appeal through the Valuation Office Agency's Check, Challenge, Appeal system.

Multipliers

There are two main multipliers, the Small Business multiplier and Standard multiplier (please note there are also different multipliers if your property is located in the City of London or Wales):-

For the 2024/25 billing year, the Small Business multiplier has remained at 49.9p in the pound and is applicable to 2023 Rateable Values below £51,000.
The Standard multiplier has increased to 54.6p in the pound, in line with the inflation rate in September 2023 of 6.7%, and will be applicable to 2023 Rateable Values of £51,000 or more.

Whilst the announcement in the Autumn Budget of a nil increase in the Small Business multiplier has been welcomed by many small businesses, those with a Rateable Value of £51,000 or more will see a substantial increase in their business rates liability next year.

Step 2 - Reliefs

The next step is to deduct any rates reliefs applicable to your business/property. There are numerous business rates reliefs available however we have outlined some of the more common ones below:-

Small Business Rates Relief
Retail, Hospitality and Leisure Relief
Transitional Relief
Charitable Relief
Empty Property Relief

There are differing criteria for how each relief is applied. However for this article, we have focused on two of the most common reliefs being Small Business Rates Relief and Retail, Hospitality and Leisure Relief:-

Small Business Rates Relief

In England, businesses who have one commercial property and a Rateable Value below £15,000 will be eligible for this relief. If you have a second property, you can still get relief on your main property if:-

None of your other properties have a Rateable Value above £2,899.
The total Rateable Value of all your properties falls below £20,000 (or £28,000 in London).

If your Rateable Value falls below £12,000 you will pay no rates and from £12,000 to £15,000 the relief is gradually tapered. i.e. at £13,500 50% will be deducted from your business rates bill.

Supporting Small Business Rates Relief

This relief is best illustrated through an example:-

You only occupy one commercial property. Your 2017 Rateable Value was £11,500 and your 2023 Rateable Value £15,500.

You will have received the full benefit of Small Business Rates relief prior to 1st April 2023 and paid no business rates. From 1st April 2023, your liability could have been circa £6,000, rising to around £6,600 from 1st April 2024. However with Supporting Small Business Rates relief applied your liability is capped to increase by £600 a year, resulting in a 2023/24 bill of only £600 and a 2024/25 liability of £1,200.

However, if you were eligible for the 2022/23 scheme the relief will end on 31st March 2024.

Retail, Hospitality and Leisure Relief

One welcome piece of news to come from the Autumn Statement, was the announcement that Retail, Hospitality and Leisure Relief would remain at 75% for 2024/25 in England. This is limited to a cash cap of £110,000 per business and therefore for larger businesses you will need to carefully consider how to best maximise the potential of this relief across your portfolio.

It has recently been announced that retail and leisure businesses in Wales will see this relief reduced from 75% to 40% from 1st April 2024. This will clearly create a disparity with one extreme example coming to mind - two public houses located on the English-Welsh border, with similar Rateable Values but receiving very different business rates bills.

Professional Advice

It is impossible to cover every circumstance relating to business rates bills within this one article as how your business rates are calculated will largely depend on your individual circumstances.

If you do require professional advice as to whether your new business rates bill is accurate or whether you may be eligible for reliefs then please don’t hesitate to get in touch.

Duty to Notify

Wed, 16 Aug 2023 16:54:33 GMT

Duty to Notify

The Non-Domestic Rating Bill has recently been making its way through both the House of Commons and the House of Lords. The bill is a culmination of various business rates reviews and government consultations and we have outlined the key points for ratepayers to consider:-

More Frequent Revaluations – The last rating revaluation was on 1st April 2023 and whilst the next one is expected for 1st April 2026, the bill sets out that more frequent revaluations will likely follow which will allow business rates to follow market values more closely.

New 12-month Improvement Relief – This new relief will come into effect from 1st April 2024 and will result in any improvements made to your property being discounted from your Rateable Value however will only apply for 1 year.

Greater Transparency – We were promised greater transparency over the evidence that underpins each rating valuation however the new bill only places a requirement on the Valuation Officer to provide information if they consider it reasonable to do so.

Duty to Notify/Annual Return – The new duty to notify and annual provision of information are perhaps the most controversial part of the new bill as they place onerous obligations onto ratepayers but no reciprocal duties have been placed onto the Valuation Office Agency.

Under the proposed new system, each ratepayer in England & Wales (this will include circa 700,000 of ratepayers who currently pay no business rates at all due to being in receipt of business rates reliefs), will be required to complete an annual return confirming that either no changes have occurred at the property or they have provided all relevant information to the VOA.

The ‘Duty to Notify’ will require ratepayers to update the Valuation Office within 60 days of changes to their rent, trading information or anything that could affect their Rateable Value (e.g. an extension to the property or the removal of an air conditioning unit).

For ratepayers who do not comply with the new provisions there will be penalties and furthermore if you provide a false statement, you potentially could be committing a criminal offence.

Material Change of Circumstances – Another controversial clause in the new bill removes the possibility of submitting a Material Change of Circumstance (MCC) appeal as a result of government legislation. The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 effectively outlawed the flurry of Covid-19 related appeals that were submitted during the Covid pandemic. This meant that many businesses that were forced to close could not contend their Rateable Values. If there are future circumstances where the government intervenes then business rates appeals would similarly be quashed. E.g. a change in law around EPC’s could not be considered.

We are yet to see the finer details on how the proposed new changes to business rates will work in practice. However, whilst ratepayers were promised greater transparency and more frequent revaluations, the outcome looks to place more onerous obligations upon ratepayers who currently struggle to navigate through a complex rating system.