Proposed Changes To Business Rates System

Key reforms being brought by the new Non-Domestic Rating Bill promise to support businesses by modernising the system to incentivise property improvements and support more frequent revaluations.

The Non-Domestic Rating Bill 2022-23 (the Bill) is schedule to start its third reading in the House of Lords in October and is likely to come in force early next year. The Bill introduces a number of measures which aim to make the business rates system fairer and more responsive to market changes. Four key changes that are of note to the landowners and occupiers are summarised below.

Frequency of revaluation of business rates

Business rates are based on the rateable value of a property, which is broadly speaking its annual rental value.