Business Rates
Expanded Retail Discount 2020/21: Coronavirus Response

jfcs-business-rates-coronavirus

The government has today provided detailed guidance on those businesses which will be eligible for a business rate holiday, with no limit to the rateable value of the eligible premises.

In addition those businesses who are eligible for Small Business Rate Relief/Rural Relief, will be eligible for a cash grant, although the finer details of this scheme and any qualification criteria have not yet been announced.

In brief, the following properties will benefit from the relief:

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

a. as shops, restaurants, cafes, drinking establishments, cinemas and live music venues,
b. for assembly and leisure; or
c. as hotels, guest & boarding premises and self-catering accommodation.

The following occupation however is not deemed as eligible:

Hereditaments that are being used for the provision of the following services to visiting members of the public:

  • Financial services (e.g. banks, building societies, cash points, bureaux de change, payday lenders, betting shops, pawn brokers)
  • Other services (e.g. estate agents, letting agents, employment agencies)
  • Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
  • Professional services (e.g. solicitors, accountants, insurance agents / financial advisers, tutors)
  • Post office sorting offices
  • Casinos and gambling clubs

For larger businesses affected by State Aid de minimum limits, the following sets out the current position:

The Government has notified the EU of its intention to bring forward an immediate change to the UK’s tax treatment of non-domestic property, in response to the ongoing Covid-19 emergency, and to seek clearance under Article 107(3)(b) of the Treaty on the Functioning of the European Union. Subject to this approval, the Expanded Retail Discount scheme will become a notified State aid.

Authorities should prepare to award the discount ignoring de minimis limits and MHCLG will inform them of the outcome of the notification as soon as it is known.

The full guidance can be found here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/873622/Expanded_Retail_Discount_Guidance.pdf

For expert advice on all business rate matters, speak to our team on: North East: 01642 262728 / London: 020 7206 2612

Or e-mail mail@joefraser.co.uk