On 21st October 2021 Rishi Sunak the Chancellor of the Exchequer announced the changes to business rates as part of the Autumn budget. He said that from 1st April 2022 until 31st March 2023 a new business rates relief would come into effect. The 50% relief, which is capped at £110,000 per organisation, is available for eligible businesses in the retail, hospitality and leisure industries.
In the 2023 tax year there will be a 100% business rates relief available to eligible businesses. This relief will not just be applied to the retail, hospitality and leisure industries it will be implemented across all industries but the criteria will be that your business must have made specific improvements in order to qualify for the relief. The relief will be available to businesses for 12 months from the date of qualification.
The above is still a work in progress and we will hear more over the next coming year, once the government has made their decisions on how this will be implemented.
The coronavirus business holiday rates for businesses in the retail and leisure industries will also continue.
To add to this the business rates multipliers for the tax year 2022/2023 will be frozen at 49.9p (small business multiplier) and 51.2p (standard business multiplier). These rates may differ in London.
How does this affect your business?
The retail, hospitality and leisure industries were impacted the most during the coronavirus pandemic. Lockdown saw all of these businesses close and when they did reopen they had heavy restrictions upon them meaning that their income was reduced significantly.
The government recognises the impact that this has had on these industries and is supporting them in order to not just survive but to grow. Grants and loans are available to those who are seeking to make improvements to their businesses and the relief will help businesses through the coming years.
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