The Government’s reform to the Business Rates system took another step forward this month. Improvement Relief became effective for qualifying property alterations.

Property Improvement Relief will apply to any disclosed, qualifying, property improvements, completed on, or after, 1st April 2024.

The property alteration would need to be one which increases the Rateable Value. This either increases the size of the space, or adds new features, which increase value. Such as heating, air conditioning, or CCTV.

The new relief is limited. It is aimed at occupiers and not landlords, applying only if a property is occupied during and after the improvement works. Further, it cannot be passed on to a subsequent party.

The amount of relief would simply cover the increase in Rateable Value. As a result of the improvements and last for one year from the date the works are complete.

This is the first step towards annual tax returns, for Business Rates. It is also the beginning of the movement of onus onto ratepayers, to bring Business Rates more in line with other areas of taxation.

These changes to the Rates system, make it ever more important to take professional advise, from an expert. This is, after all, a complicated and ever changing area of property taxation.

Maughan Mitchell have provided Director level advice, in the specialist areas of Lease Advisory and Business Rates, for over 30 years. We are here to assist where you need advice in relation to the ongoing changes, and how they may impact your business.

Business rates relief: Improvement relief – GOV.UK (www.gov.uk)

Non-Domestic Rating Act 2023 – Parliamentary Bills – UK Parliament

https://www.taxadvisermagazine.com/article/significant-changes-are-underway-business-rates