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On 1 April 2024, the Government introduced a new Improvement Relief for business rates, designed to encourage ratepayers to invest in their properties. Improvement Relief will support businesses wishing to invest in their property. It will ensure that no ratepayer will face higher business rates bills for 12 months because of qualifying improvements to a property they occupy. We caught up with Rachel Payne, an Associate in our business rates team to learn why she feels this will remove a significant barrier to investment in property enhancements.
For the first time since before the pandemic, the multiplier used to calculate the bills will increase, albeit only for properties with a Rateable Value (RV) over £51,000.
The Improvement Relief means that any qualifying works completed between 1 April 2024 and 31 March 2028 on or after 1 April 2024, will not increase rates bills for businesses until 12 months after the works have been completed.
The policy objective of the relief is to help occupiers make improvements to their existing premises and is subject to several conditions. The qualifying works condition included any extensions to buildings, improvements to the physical state of the property and any new plant and machinery.
The occupation condition dictates that the same ratepayer has been in occupation on each day since the qualifying works commenced. This ensures the support is not diverted to landlords, developers or businesses which have merely inherited the improvements from a previous occupier.
Introducing Improvement Relief In April 2024 gives businesses another incentive to consider refurbishing asset portfolios. Improvement Relief is being implemented to ease the burden on ratepayers and provide a supportive environment for business growth.
It has been specifically designed to assist ratepayers who invest in improvements to their properties to enhance their business operations. Businesses can reap the benefits of their improvements without immediate financial strain.
Find out more about our business rates consultancy services.