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Retail Rate Relief

2019/20

The government announced a temporary relief scheme for 2019/20 and 2020/21 for retail properties.

The definition of retail properties is 'occupied premises, with rateable values under £51000, which are wholly or mainly being used as a shop, restaurant, cafe or drinking establishment' with a number of exclusions. 

Under the scheme, eligible ratepayers in 2019/20 will receive a one-third discount of their daily chargeable amount. Applications for this relief were required by 30 September 2020. 

The award of such discounts is considered state aid. However, it will be state aid compliant where it is provided in accordance with the De Minimis Regulations (1407/2013). The De Minimis Regulations allow an undertaking to receive up to €200,000 'de minimis' aid over a rolling three-year period.

If you are receiving, or have received, any 'de minimis' aid granted during the current or two previous financial years (from any source), you should inform the local authority immediately with details of the aid received.

2020/21

Following the chancellor's budget, and in response to coronavirus, the eligibility criteria is extended to include cinemas and music venues. hospitality and leisure businesses. 

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

a - as shops, restaurants, cafes and drinking establishments, cinemas and live music venues

b - for assembly and leisure or

c - as hotels, guest and boarding premises and self-catering accommodation

The level of relief has been increased to 100% and the maximum rateable value threshold has been removed.

If you are not automatically allocated retail relief and you believe that you qualify, please complete and return this application form, which includes guidance notes and return to the Business Rate section. Applications for this relief were required by 30 September 2021.

2021/22

At the Budget on 3 March 2021, the Chancellor announced that the Government would provide additional business rates support for eligible retail, hospitality, leisure, and nursery businesses in England occupying a qualifying property.

As a temporary measure for 2021/22 he announced that:

  • The Expanded Retail Discount (2020/21) will be extended for three months for eligible properties, at 100% relief, uncapped, for the period 1 April 2021 to 30 June 2021.
  • From 1 July 2021 to 31 March 2022, the Expanded Retail Discount would apply at 66% relief for eligible properties in the scheme, with a cash cap of £2m for businesses that were required to close as at 5 January 2021, and up to £105,000 for business permitted to open at that date.
  • The Nursery Discount 2021 would also be extended for three months, at 100%, uncapped, for the period 1 April 2021 to 30 June 2021.
  • From 1 July 2021 to 31 March 2022 the Nursery Discount would apply at 66% relief for eligible properties, with a cash cap of £105,000.
  • For the Expanded Retail Discount 2021/22 and Nursery Discount 2021/22, businesses may choose to opt out of support by providing billing authorities notification of their request to refuse support, per eligible hereditament.

In line with Government recommendations, the existing reliefs have been extended to 2021/22.

As the relief has been granted under Section 47 of the Local Government Finance Act 1988 it is confirmed that the award is for three months only, although it will show for the whole financial year on the opening bill. and an amended bill will be issued to reflect the subsequent changes to the scheme from 1 July 2021.

2022/23

At the Budget on 27 October 2021, the Chancellor announced that eligible ratepayers will receive 50% relief on their business rates bills for the year 2022/23 up to a maximum cash cap of £110,000.

Read details of the revised scheme. Relief will be provided to eligible occupied retail, hospitality and leisure properties in 2022/23.

In line with the conditions set by the government, a ratepayer may only claim up to £110,000 of support under the 2022/23 Retail, Hospitality and Leisure Relief Scheme for all of their eligible hereditaments. This cash cap applies at a Group company level (so holding companies and subsidiaries cannot claim up to the cash cap for each company) and also to organisations which, although not a company, have such an interest in a company that they would, if they were a company, result in its being the holding company.

Furthermore, the Retail, Hospitality and Leisure Relief Scheme is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). The subsidies chapter within the TCA only applies to subsidies over the value of approximately £343,000 per beneficiary over a three-year period (consisting of the current financial year and the two previous financial years) (the Small Amounts of Financial Assistance limit).

Extended Retail Discounts granted in 2020/21 or 2021/22 do not count towards the limit. Covid business grants received from local government and any other subsidy claimed under the Small Amounts of Financial Assistance limit over the thre-year period should be counted.

Therefore, to be eligible to the 50% Retail, Hospitality and Leisure relief you must not have exceeded either the £110,000 cash cap for 2022/23 or the Small Amounts of Financial Assistance limit of £343,000 over three years (including 2022/23).

If you have automatically been allocated retail relief and you believe that you may not be entitled, please notify our Business Rate section on 01744 675264, email businessrates@sthelens.gov.uk or post to St Helens Borough Council - Business Rates, PO Box 10592, Nottingham NG6 6DP.