In his Autumn Statement 2022, the Chancellor, Jeremy Hunt announced changes to business rates to further support businesses and the high street over the next five years and the scrapping of proposals to introduce an online sales tax.
Business rates
From 1 April 2023
- The planned property revaluation will go ahead on 1 April 2023.
- Upwards Transitional Relief will cap bill increases caused by changes in rateable values at the 2023 revaluation.
- The ‘upward caps’ will be 5%,15% and 30%, respectively, for small, medium and large properties in 2023-24.
- The planned business rates multiplier increases for 2023-24 will be scrapped and the multipliers will instead be frozen for another year at 49.9p and 51.2p.
- Support for eligible retail, hospitality, and leisure businesses will be extended and increased from 50% to 75% with relief of up to £110,000 per business.
- Increases for the smallest businesses losing eligibility or seeing reductions in Small Business Rate Relief (SBRR) or Rural Rate Relief (RRR) will be capped at £600 per year.
From April 2024 to 2028
- A new improvement relief will be introduced to ensure ratepayers do not see an increase in their rates for 12 months as a result of making qualifying improvements to a property they occupy.
Online Sales Tax (OST)
The idea of an OST was put forward by certain stakeholders in the context of Business Rates reform to 'rebalance' the business rates bills paid by in-store retailers in comparison to their online counterparts.
Following Consultation, the government has decided not to introduce an online sales tax due to concerns about complexity and the risk of creating unintended distortion or unfair outcomes between different business models.
Useful guides on this topic
Autumn Statement: At a glance
The Chancellor, Jeremy Hunt has presented his Autumn Statement 2022. This is the UK's third fiscal event this Autumn. The Autumn statement was accompanied by the Office of Budget Responsibilities' report.
External links
Business Rates Revaluation 2023: Consultation on the transitional arrangements
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