Improvement Relief for Business Rates

Improvement relief means that qualifying improvements to a property do not increase the business rates bill straight away. It is designed to remove the disincentive to invest in premises.

What it does

Where a ratepayer makes qualifying improvements to a property, improvement relief provides that the resulting increase in rateable value does not raise the bill for a set period, giving a window of relief before the higher value feeds through.

The conditions

Broadly, the relief applies where the works meet the qualifying criteria and the property remains occupied by the same ratepayer during and after the works. The VOA certifies the improvement and the billing authority applies the relief. The exact qualifying conditions and period are set by the scheme, so check the current rules.

Why it matters

Previously, improving a property, for example upgrading it to meet MEES or to attract a better tenant, could immediately increase the rateable value and the bill. Improvement relief softens that, so investment in the building is not penalised as quickly.

Check before you build

If you are planning works that could raise the rateable value, check whether improvement relief applies and what you need to do to qualify. See rateable value and mitigation.

What is business rates improvement relief?

It means qualifying improvements to a property do not increase the rates bill straight away, giving a window of relief before the higher value applies.

Does improvement relief apply if I sell or vacate?

Broadly it applies where the property remains occupied by the same ratepayer, so check the current conditions before relying on it.