Spring Budget 2024 | Business rates

Yesterday, Jeremy Hunt’s Spring Budget contained several references to business rates.

The most concerning for those with empty properties will be the phrase entitled “Business Rates: Avoidance and Evasion.” Currently, owners of empty properties can reoccupy for six weeks to reset the statutory void period. The budget extends the occupation period from six weeks to thirteen weeks starting 1 April, 2024.

Despite seemingly endless previous consultations, the government will also consult on a “General Anti-Avoidance Rule” in England. This falls short of the current 6-month occupation requirement in Wales. Rates mitigation is seen by many as an essential part of minimising the holding cost of empty buildings, and the extension of the occupancy period to reset the relief will significantly increase empty rates costs.

Film studios, on the other hand, will benefit from “Film Studios Relief.” Eligible sites in England will receive a 40% reduction on gross business rates bills from April 2024 until 2034, worth around £470 million over the next 10 years. The rateable value of some of these studios is staggering: Sky Studio’s £29m, Warner Bros in Watford £25m, and Pinewood £16m. The rateable values of these sites have increased massively and already benefit from significant amounts of transitional relief and will continue to benefit from the new “Improvement Rate Relief.”

Beyond this, there are no new announcements and no reversal of the recent multiplier increase covered in my recent article.

Please get in touch if you have any questions.

Richard Roberts Bsc MRICS 

richard.roberts@rvwcs.co.uk

www.rvws.co.uk

07881 503540