Michael Lansdell explores how the October budget will affect businesses in the coming years.
Business owners in England would have welcomed a series of measures, announced in the October budget, to alleviate the burden of business rates.
For 2022/23, 50 per cent relief will be available for eligible properties in retail, hospitality and leisure. Further positive news is that the business rates multipliers will be frozen, again. They had been kept at the 2020/21 level for the current year, and this will continue until the end of March 2023. For a small business, the multipliers will remain at 49.9p; 51.2p as standard.
In fact, thanks to the small business rates relief, many will be paying no rates at all. In 2022/23, retail, hospitality and leisure properties that do not qualify for this relief will get a 50 per cent discount on their business rates (with a cash cap of £110,000 for each). Currently there is no guidance about who will be eligible; eligibility won’t be as wide as it is for the current 66 per cent discount, though.
Moving forward…
Other measures announced by the chancellor included:
- Starting from 2023, revaluations will take place every three years.
- An improvement relief, providing 100 per cent relief from any additional rates charge for 12 months where a property’s rateable value has been increased (not all works will impact rateable value, of course).
- For green investments, an exemption from higher rates bills will apply where things like solar panels are installed, for example. Eligible low-carbon heating will also benefit from a 100 per cent relief.
If you’re a business – or planning to become one – and have big ideas for the future, give us a call at Figurit. We can help you explore ways to become more tax efficient and boost your profits.
For help with business or personal tax planning, call Figurit (formerly known as Lansdell & Rose) on 020 7376 933.