The hospitality, retail and leisure sector has had a turbulent few years with increased costs and the post Covid boom cooling significantly in the past year; businesses would have been hoping from some good news from the Chancellor.
Below are some areas where the sector will see changes from this budget.
Stamp Duty Land Tax (SDLT)
The higher rate of SDLT payable by those that purchase an additional dwellings is to increase from 3% to 5% from 31 October 2024. This is in addition to the normal SDLT paid on the purchase of a property. This higher rate is paid by individuals who already own a residential dwelling on midnight the day the additional property is acquired. It is also payable by companies and trusts purchasing a property and will significantly impact the hospitality sector.
Business rates relief
Businesses in the retail, hospitality and leisure sectors will receive 40% business rates relief in 2025-26 rather than 75% relief in the current year.
From 2026, these businesses will have their rates calculated using “permanently lower multipliers”, although we have no detail on exactly what this means at the current time. These reductions in the multiplier for these sectors will be paid for by increasing business rates on properties with rateable values of more than £500,000. The business rates multipliers for small businesses will be frozen at 49.9p for 2025-26, while the standard multiplier will increase to 55.5p.
The Government also confirmed that private schools will no longer qualify for charitable relief from business rates from April 2025.
Meanwhile it had published a discussion paper on the future of business rates on 30 October and is seeking comments about its proposals by March 2025.
Budget analysis webinar
On October 31st, we hosted a Budget Analysis webinar, analysing the Chancellor's announcements and the potential consequences for both businesses and individuals.
If you would like to discuss how the announcements from the Autumn Budget impact your hospitality business, please get in touch. Call 0808144 5575 or email help@armstrongwatson.co.uk.
