Business rates relief 2024/2025

Last November, the measures announced in the Autumn Statement 2023 included some extensions and some cuts to business rates relief for the 2024–2025 tax year.

While the business rates burden may be alleviated for some businesses in England and the Scottish islands, businesses in Wales sadly will not be as fortunate.

Here are the latest figures for business rates relief and multipliers from 1st April 2024.

Business rates discounts

Business properties in the retail, hospitality, and leisure sectors that are not eligible for small business rates relief may qualify for a 75% discount, which was available in 2023 and will be continuing in 2024.

With a cap of £110,000 per business, this discount is typically available from local councils for business properties that are primarily used as shops, restaurants (including cafés, bars, or pubs), cinemas, music venues, hotels, gyms, or spas.

Welsh retail properties have an equivalent scheme, but the discount will drop to 40% for 2024. There is no equivalent scheme for business properties in Scotland or Northern Ireland, but hospitality businesses on the Scottish Islands will get 100% relief.

Business rates multipliers

To calculate a business rates bill, the property’s rateable value (RV) is multiplied by a multiplier that may reflect the Consumer Price Index (CPI).

The small business multiplier, which applies to properties with an RV below £51,000, will continue to be frozen at 49.9p in 2024, as it was in 2023.

However, the standard multiplier, which applies to properties with RVs over £51,000, is going to increase by 6.7% – reaching 54.6p for 2024–2025.

These multipliers apply in England. In Wales, the regular multiplier is increasing by 5% to 56.2p, while there have been no announcements yet for Northern Ireland.

In Scotland, properties with RVs up to £50,000 will be subject to a multiplier of 49.8p, RVs between £51,001–£100,000 to 54.5p, and RVs above £100,000 to 55.9p.

Help with business rates relief

With inflation at around 4% and expected to fall throughout 2024, the increased multipliers are unlikely to be welcome news for businesses in England and Wales – though the frozen multiplier for small businesses and continued retail discount is sure to benefit many businesses in England.

Detailed information about business rates in England and the types of business rates relief is available on the government website.

If you are concerned about the impact of business rates on your small to medium business, have you considered speaking with tax consultants?

At gbac, our accountants in Barnsley and Leeds can help businesses across the UK to improve their financial management and benefit from efficient tax reliefs. Call 01226 298 298 or email info@gbac.co.uk to discuss our services.