What are the business rate relief changes for 2024-2025?

Attention business owners! In this article, we will cover the changes that were made to business rates in for the FY24/25.

Attention business owners! In this article, we will cover the changes that were made to business rates in for the FY24/25.  

Business rates are a tax levied on business properties in the UK. These rates are determined by the and are based on a property’s rateable value, therefore an assessment of the annual rental value of a property. As properties are a significant expense to the majority of businesses and often consume a considerable amount portion of a companies operating budget, these should be reviewed and can often be challenged, due to their subjective valuation. Through challenging business rates, this enables overhead costs to be reduced and funnelled into other areas of business operations.

Industries which experienced a change/continuation in their Business Rates include:

  • Retail hospitality and leisure relief continues in 24/25 at a rate of 75% relief (up to £110k per business). Meaning business owners within these sectors will receive a 75% reduction on their Business Rates bill
  • Film studio relief, eligible film studios will receive £470m over the next 10 years as a 40% reduction on their gross Business Rates
  • Empty property relief – properties will now be required to be occupied for a period of 13 weeks before they can be considered for additional empty rates relief.  

 

All other unchanged reliefs can be found here.

Eligibility criteria for Business Rates Relief

To be eligible for the 2024-2025 Business Rate Relief, businesses must meet certain criteria as set by the government. Here are some key eligibility factors to consider:

  1. Sector-specific eligibility: The relief is available to businesses in specific sectors that have been significantly impacted by the pandemic. These sectors have experienced prolonged closures, reduced footfall, and restrictions on operations, making them eligible for targeted financial support via Business Rates Relief.  
  1. Business property size: The relief applies to businesses occupying properties with a rateable value below a certain threshold. The exact threshold may vary depending on the region and local authority, so it is essential to check the specific requirements for your area with a trusted provider, such as RCK.  
  1. Business location: The relief is available to businesses located in the UK. Different regions may have additional eligibility criteria, so it is crucial to consult with your local authority or government website to determine if your business qualifies.

How to apply for Business Rates Relief with a provider

We advise working with a provider to simplify the Business Rates relief application process.

To initiate this process, please reach out to us with the necessary information including

  1. Business rates account number.
  2. The rateable value of your property.
  3. Latest copy of Business Rates bills.

From this point onwards, we can prepare the application on your behalf and manage communications with the relevant body (either the Local Authority or the Valuation Office.

 

Case study of a businesses who has benefited from Business Rates Relief  

To understand the tangible impact of the 2024-2025 Business Rate Relief, let's take a look at some real-life case studies of businesses that have benefited from the relief:

RCK were instructed to carry out a Business Rates review of a florist who had moved into a new premises for the 2023 Rating List. RCK carried out a holistic review of all of the avenues to reduce the Business Rates and saw that the client should have in fact been in receipt of the Retail Hospitality and Leisure relief.

RCK submitted representations to the Local Authority who responded within a two month period applying 75% relief to the2023/2024 Rates Year as well as 75% relief to the 2024/2025 Rates Year, saving the client over £35,000 in Business Rates.

To read more about Business Rates, please do so here. To arrange a no obligation investigation call to understand if you are overpaying please reach out.

 

Written by Bradley Westlake (Head of Business Rates)

Explore other articles

See all
Speak to an Expert Today