Measures affecting landlords and other owners of land and property proposed during the Autumn Budget 2024 include introducing permanently lower multipliers for Retail, Hospitality and Leisure (RHL) properties, ATED charges rise and the continuation of FHL abolition.
The Chancellor, Rachel Reeves, announced the following measures:
Business Rates Reform
The following changes have been announced:
- To introduce permanently lower multipliers for Retail, Hospitality and Leisure (RHL) properties with a Rateable Value (RV) under £500,000 from April 2026-27.
- To introduce a higher multiplier on properties with RV of £500,000 and above, which includes the majority of large distribution warehouses including those used by large online businesses.
- To provide support for retail, hospitality and leisure properties in the interim period leading up to the new permanent multiplier by providing 40% relief to RHL businesses on their business rates in 2025-26, up to a cash cap of £110,000 per business.
- Protecting the smallest properties by freezing the small business multiplier in 2025-26.
- The government says it believes that the best outcomes in rates reform will be achieved by developing reforms in partnership with businesses and other stakeholders through a process of co-design. It would like to connect to stakeholders: if you would like to be involved, please contact
This email address is being protected from spambots. You need JavaScript enabled to view it. by 15 November.
Annual Tax on Enveloped Dwellings (ATED)
- The ATED annual charges will rise by 1.7% from 1 April 2025 in line with the September 2024 Consumer Price Index (CPI).
| Taxable value | 2025-26 | 2024-25 |
| £500,001-£1m | £4,450 | £4,400 |
| £1m+-£2m | £9,150 | £9,000 |
| £2m+-£5m | £31,050 | £30,550 |
| £5m+-£10m | £72,700 | £71,500 |
| £10m+-£20m | £145,950 | £143,550 |
| ££20m+ | £292,350 | £287,500 |
ATED: Changes to alternative financing rules
From the date of the next Finance Act
- Finance Bill 2024-25 will amend the ATED rules to ensure that individuals purchasing property through alternative finance arrangements by providing certainty that ATED charges do not arise where alternative finance is used, the way that ATED charges do not arise under similar conventional finance arrangements.
Furnished Holiday Letting (FHL) reform
FHL reform was announced by the previous government during its Spring Budget 2024. The Chancellor confirms her government will remove the tax advantages that current FHL landlords have received over other property businesses in four key areas from April 2025 by:
- Applying the finance cost restriction rules so that loan interest will be restricted to the basic rate for Income Tax.
- Removing capital allowances rules for new expenditure and allowing replacement of domestic items relief.
- Withdrawing access to Reliefs from taxes on chargeable gains for trading business assets.
- No longer include this income within relevant UK earnings when calculating maximum pension relief.
After repeal, former furnished holiday let properties will form part of the person’s UK or overseas property business and be subject to the same rules as non-furnished holiday let property businesses.
See Furnished Holiday Letting reform
Landfill Tax
The standard and lower rates of Landfill Tax from 1 April 2025 will be in line with the Retail Price Index, adjusted to account for high inflation in the period 2022 to 2024.
| Material sent to landfill | Rates from 1 April 2024 | Rates from 1 April 2025 |
|---|---|---|
| Standard rated | £103.70 tonne | £126.15 tonne |
| Lower rated | £3.30 tonne | £4.05 tonne |
Useful guides on this topic
Autumn Budget 2024: At a glance
Our At a glance view to the Autumn Budget 2024
Our Autumn Budget 2024: Live Speech highlights
Our live feed summary of the highlights of the Chancellor's Autumn Budget speech.
