As we embark upon another financial year, Billing Authorities will be aware of the substantial changes and implementations that came into effect on 01/04/2024. Many of these updates were introduced by the Non-Domestic Rating Act 2023, which made fundamental changes to the business rates system. We have put together a brief summary of what the changes entail below.
1. Empty Property Relief:
The qualification criteria for empty property relief has been expanded in order to deter the practice known as “box shifting.” The minimum occupation period, or “reset period,” has been extended from 6 weeks to 13 weeks however, properties with reset periods starting prior to 01/04/2024 continue to adhere to the previous six-week period.
Furthermore, there is anticipation surrounding an upcoming consultation surrounding the implementation of a “General Anti-Avoidance Rule” in order to help combat other emerging rates avoidance tactics.
2. Removal of Discretionary Relief Backdating Restriction:
Billing Authorities (BAs) now possess increased discretion in awarding Section 47 relief retrospectively. This includes the ability to grant discretionary relief in circumstances where more than 6 months have elapsed since the end of the relevant financial year.
Although technically initiated on 26/10/2023, practical application of this change commences from 01/04/2024, removing restrictions for the 2023/24 financial year onwards.
3. Introduction of Improvement Relief:
Improvement relief is now in force, aiming to assist ratepayers who enhance their properties. Eligible Ratepayers receive 100% relief for one year following the completion of qualifying improvements between 01/04/2024 and 01/04/2028. These improvements must increase the property’s rateable value/size/incorporate new features or equipment.
4. Heat Network Relief Becomes Mandatory:
Previously administered by BAs using their discretionary powers, the Heat Network Relief has transitioned to a mandatory scheme from 01/04/2024. It is noted that both the criteria associated with the relief and practical application of the discount remain consistent with the prior discretionary relief.
5. Expansion of Charitable and Unoccupied Reliefs and Exemptions:
New provisions extend unoccupied and charitable rate relief to certain properties reflected within the central list. Previously restricted to properties on the local rating list, this expansion ensures a broader application of these reliefs and zero ratings going forward.
6. Rural Rate Relief Enhancement:
Rural Rate Relief now stands as a 100% mandatory relief, a substantial increase from its previous 50% mandatory provision. As such, moving forward BAs are no longer required to make a judgement in relation to the prior discretionary element.
As always, Analyse Local’s Insight Assist Team will continue to monitor these updates and provide our clients with insightful detail on an ongoing basis. If you do not currently subscribe to the Insight Assist service and are keen to find out more, simply get in touch via ‘info@analyselocal.co.uk’ or contact your Client Manager.