At the Autumn Statement on 22nd November 2023. The Chancellor announced the introduction of Improvement Relief with effect from 1st April 2024.
This relief has been devised to support businesses seeking to invest in their properties. It ensures that, upon making qualifying improvements to properties that you occupy, you will not face a higher business rates bill for 12 months.
Eligibility
The Legislation stipulates that relief may be accessible for periods preceding 1st April 2029. The Government’s intention is for this relief to be applicable to projects concluded by 31st March 2028, with qualifying projects completed by that date receiving a 12-month relief benefit.
Any qualifying works must be completed before the 1st April 2028. A definition of qualifying works has been provided as any which:
Increase the area of any building in or on the hereditament.
b. Otherwise improve the physical state of the hereditament.
c. Add rateable plant and machinery to the hereditament.
As such, newly constructed or refurbished hereditaments that were removed from the rating list during the period works will not qualify. A change of use or addition of land alone will also not meet the requirements for the relief.
This relief will be awarded upon certain conditions being met:
Firstly, that the Valuation Office Agency (VOA) are satisfied that the works meet the above criteria, and a certificate has been issued in relation to the hereditament (the same not having been withdrawn or ceased to have effect).
You can report changes to your property using your Business rates valuation account.
Secondly, that Sefton Council are satisfied that, in the period since the qualifying works commenced, the property has remained occupied, and the ratepayer of that hereditament (or a relevant predecessor hereditament) has not changed. By ensuring that the same ratepayer has remained in occupation, this enables the support to be directed to occupiers rather than landlords, developers or businesses inheriting improvements from previous occupiers.
There is no requirement to make an application for Improvement Relief and relief will be automatically awarded once Sefton Council are satisfied that the above conditions have been met.