As we move into 2024, the landscape of business rates in the UK is undergoing significant changes. Understanding these modifications is crucial for businesses to navigate the financial year effectively. Here's a breakdown of the top changes that will be in force as of April 2024:
1. Freezing of the Small Business Multiplier: In a bid to support small businesses and revitalise the high street, the small business multiplier has been frozen at 49.9p. This initiative aims to alleviate some financial pressures on smaller enterprises, ensuring they aren't burdened with increased rates during challenging economic times.
2. Increase in the Standard Multiplier: The standard multiplier, applicable to businesses not eligible for the small business multiplier, will see an uprate by 6.7% (based on September 2023's CPI figure). This change will escalate the multiplier from 51.2p to 54.6p. While this represents a significant hike, it's part of the government's efforts to balance the economic scales across different business sizes and sectors.
3. Extension of the RHL Relief Scheme: The Retail, Hospitality and Leisure (RHL) Relief Scheme will be extended into the 2024-25 financial year. Eligible properties can benefit from 75% relief, capped at £110,000 per business. This move reflects the government's recognition of the continued challenges faced by these sectors and its commitment to offering them sustained support.
4. Changes Following the Non-Domestic Rating Act 2023: The introduction of new regulations as a result of the Non-Domestic Rating Act 2023 marks a significant shift. These changes encompass alterations to business rates multipliers, the Small Business Rate Relief (SBRR) regulations, and the introduction of relief for unoccupied properties. The overarching goal is to modernise and simplify the business rates system, making it more accessible and fairer for businesses across the UK.
5. Introduction of Improvement Relief: Starting April 2024, a new relief measure ensures that ratepayers won't experience an increase in their rates for 12 months following qualifying improvements to a property they occupy. This initiative is part of a broader government strategy aimed at encouraging investments and improvements in business properties, fostering growth and development.
For businesses navigating these changes, it's essential to stay informed and seek professional advice where necessary. As specialists in business rates, Commercial Property Advisors (CPA) is poised to offer expert guidance in this evolving landscape. Our dedicated team, backed by data-driven strategies and a client-centric approach, ensures that businesses can adapt to these changes efficiently and effectively.
Understanding and adapting to these changes can be complex, but with the right advice and support, businesses can leverage these developments to their advantage. For more information and personalised advice, do not hesitate to contact CPA, your trusted partner in navigating the complexities of business rates.