The chancellor delivered his Spring Budget 2024 on Wednesday, March 6th, 2024. With little reference in Jeremy Hunt’s speech about business rates, it was later released in the budget document that there had been a conclusion to the empty rates avoidance consultation paper, and relief for film studios from 1st April 2024
Empty Rates Avoidance Conclusion
The government launched the Business Rates Avoidance and Evasion Consultation in July 2023 with the intention of strengthening the English empty property relief system. They asked stakeholders and other practices their views on what is the best way to close down on avoidance practices and to gather wider avoidance and evasion risks. There were nearly 200 respondents who demonstrated the strength of feeling across the board on this important issue.
This resulted in the government announcing that from 1st April 2024, the empty rates relief reset period will be extended from six to thirteen weeks. The government will also consult further on a “general anti-avoidance rule”.
Relief for Film Studios
The government announced that 40% relief will be given to eligible film studios in England between the period of 1st April 2024 to 31st March 2034. This will be available for properties that have been valued by the Valuation Office Agency as film studios and will be applied before any other relief is applied.
Transitional relief will also be included, bringing the total bill reduction to no more than 60%. The government anticipates that around forty existing studios in England will benefit from this relief and will also apply to newly built studios if they meet eligibility criteria.
