What is it?
The Government will introduce a business rates holiday for retail, hospitality and leisure businesses in England.
Announced in the 2021 Budget, the Business Rate Holiday has been extended for three months, until the end of June 2021.
Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.
Who is it for?
You are eligible for the business rates holiday if:
- Your business is based in England
- Your business is in the retail, hospitality and/or leisure sector
Further clarification on who this is for from the Government: 11. We consider shops, restaurants, cafes, drinking establishments, cinemas and live music venues to mean:
i. Hereditaments that are being used for the sale of goods to visiting members of the public:
- Shops (such as: florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets, etc)
- Charity shops
- Opticians
- Post offices
- Furnishing shops/ display rooms (such as: carpet shops, double glazing, garage doors)
- Car/caravan show rooms
- Second-hand car lots
- Markets
- Petrol stations
- Garden centres
- Art galleries (where art is for sale/hire)
Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:
- as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
- for assembly and leisure
- as hotels, guest & boarding premises and self-catering accommodation
Estate agents, lettings agencies and bingo halls that have closed as a result of Covid-19 measures to restrict the spread of the virus will be exempted from business rates in 2020-21.
How does it work?
On 3 March 2021, this scheme was extended by three months, until the end of June 2021. The rates to April 2022 will be discounted by two thirds, up to a limit of £2 million per premises – with a lower cap for businesses that have been able to stay open.
After 30 June 2021, if you’re eligible you could get 66% off your business rates bills for the rest of the 2021 to 2022 tax year (1 July 2021 to 31 March 2022) - up to a total value of £2 million.
There is no action for you to take. Local authorities will be managing this.
You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator.
Further guidance for local authorities is available in the expanded retail discount guidance.
What should I do next?
Critchleys Clients: If you have specific questions, please contact your Critchleys Accountant directly.
To view the government's measures to protect UK high street from aggressive rent collection and closure, click here.
Published 24 March 2020
Last Updated 1 June 2021
1 June 2021
After 30 June 2021, if you’re eligible you could get 66% off your business rates bills for the rest of the 2021 to 2022 tax year (1 July 2021 to 31 March 2022) - up to a total value of £2 million.
5 March 2021
The business rates holiday has been extended for three months, until the end of June, and, to April 2022, rates will be discounted by two thirds, up to a limit of £2 million per premises – with a lower cap for businesses that have been able to stay open.
27 March 2020
Estate agents, lettings agencies and bingo halls that have closed as a result of Covid-19 measures to restrict the spread of the virus will be exempted from business rates in 2020-21.
24 March 2020
First published.
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