Business rates holiday
All retail, hospitality, and leisure businesses will be given a business rates holiday for the 2020/21 tax year as part of the package of coronavirus measures. This rates holiday will be known as the ‘expanded retail discount scheme’.
Properties that will benefit from this relief include those mainly or entirely used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues;
- for assembly and leisure; or
- as hotels, guest and boarding premises and self-catering accommodation.
For further details of the various businesses which benefit from the rate holiday under each of the above categories, click here.
In addition to the above, a 12-month business rates holiday has also been announced for nursery businesses.
No action needs to be taken by businesses eligible for the rates holiday; local authorities will automatically reissue bills for 2020/21.
Retail, hospitality and leisure grant fund
In addition to a rates holiday, all retail, hospitality, and leisure businesses with a property that have a rateable value between £15,000 and £51,000 will be eligible for a £25,000 cash grant. The sub-categories of businesses qualifying for this grant is referenced to those listed under the expanded retail discount scheme (see above).
Small business grant fund
Further, up to 700,000 small businesses that pay little or no business rates, will be eligible for a cash grant of £10,000. There is no restriction on sector or industry for this grant.
The grant will be payable to businesses that, on 11 March 2020, had a property that was eligible for the small business rate relief (SBRR) scheme. This SBRR scheme is available to a business with a property that has a rateable value of less than £15,000. The grant will also be available to those businesses that had a property eligible for the rural rate relief scheme as of the same date.
Exclusions
The grants will not be available to properties occupied for personal use, car parks, parking spaces nor businesses in liquidation or dissolved as of 11 March 2020. Businesses with a rateable value of over £51,000 and businesses which are not subject to the business rates system are not eligible for a grant.
Claiming a grant
One grant will be payable for each eligible property. Where the property qualifies under both categories above, it is anticipated that they would receive the higher grant available of £25,000.
Once funding is available, local authorities will write to those businesses eligible for a cash grant directly, rather than businesses having to make an application. Any queries regarding this or the properties rateable value should be directed to your relevant local authority.