22 November 2021
Business rates are government taxes imposed on businesses that use non-domestic properties such as shops, offices, warehouses, factories, pubs and holiday rental homes.The government has provided a new package of business rates measuresto support businesses in England.
Please see the changes below.
Business rates measures
For 2022/23 the Government set out:
A new relief for eligible retail, hospitality and leisure properties with 50% relief on rates bills up to £110,000 per business;
A freezing of the multipliers at 49.9p (small business multiplier) and 51.2p (standard multiplier);
The extension of the current Transitional Relief and Supporting Small Business schemes.
The scope of the discount for 2022/23 will return to pre-Covid-19 eligibility for retail properties. Hospitality and leisure properties will continue to remain in scope. Further details on the eligibility for the scheme will be provided later.
Effective date
These changes will have effect for 2022/23.
Business rates review
The Budget and the Review commits, in the longer term, to making improvements to the business rates system, including more frequent revaluations, moving to a three yearly cycle starting from the next revaluation in 2023, with the following revaluation in 2026.
Summary
Thus, the new measures will take place for 2022/23 and the rates revaluations will take place every three years, replacing five-year gaps. All businesses that use non-domestic properties such as shops, offices, warehouses, factories, pubs and holiday rental homesneed to be mindful of the new measures.
For further information on any of the points above contact
Mikita Makayou at mikita@lexefiscal.com, or
Dr. Frank at clifford.frank@lexefiscal.com.
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