At the autumn budget on 30 October 2024, the Chancellor announced changes to business rates from 1 April 2025. These include:
- The small business rates multiplier will be frozen at 49.9p for properties with a rateable value of less than 51,000.
- The standard business rates multiplier will increase by 1.6% to 55.5p.
- The retail, hospitality and leisure (RHL) relief scheme will be extended for one year for 2025/26, keeping the existing eligibility criteria but reducing the level of relief to 40%, up to a cap of £110,000 per business.
- From April 2025, charitable rate relief will no longer apply to private schools, however this change is subject to parliamentary process and we are awaiting final instructions.
The Non-Domestic Rating Act 2023
In October 2023 the Non-Domestic Rating Act was passed, resulting in some changes to business rates from April 2024. This includes:
- From 1 April 2024 all rates bills for properties with a rateable value of less than 51,000 will be calculated using the small business rates multiplier. This means bills for organisations that receive 80% mandatory relief and empty properties will be calculated using the small multiplier and will no longer be charged the small business supplement.
- Some businesses that make improvements to their property will have the increase in rateable value in relation to the improvements disregarded for 12 months. Improvement Relief will be granted on their rates bill to delay the increase in their bill.
- Heat Network relief will become mandatory. No other changes have been made to the scheme.
- Revaluations will take place every three years, rather than every five years. This means that the rateable value of properties will be reviewed more frequently and should keep up with market changes.
We may be able to automatically update your bills for the new financial year to show the relief your business is entitled to. Your new bills will be issued in March 2025.