Covid-19 Expanded Retail Discount
As the Covid-19 crisis has started to unfold, the Government has taken steps to alleviate economic suffering for many retail, leisure and hospitality businesses that are paying business rates, in the form of the Expanded Retail Discount.
The Government had previously announced that there would be a discount on business rates for retail businesses and has expanded this to be a discount of 100% for the tax year 2020/21 in light of the crisis. It has additionally included the leisure and hospitality sectors within the categories that are able to claim the relief.
Whilst the original discount on business rates was limited to those businesses that have properties of a rateable value being less than £51,000 per year (which is calculated as the estimated open market rent), the Government has confirmed in its guidance that there is no rateable value limit for the new temporary relief.
There are certain eligibility requirements, such as the business property needing to be occupied (though for the purposes of Covid-19, the property will still be determined as occupied if it is closed as a temporary measure due to the Government’s advice) and it being wholly or mainly used in accordance with the guidance, which can be found here.
Whilst the Government has announced this new relief, it is the responsibility of the local authority to follow the guidance and determine which businesses in their authority can claim the discount.
We recognise that these are unprecedented and uncertain times for you. If you would like more information or have any questions in relation to any of the above, please contact a member of our Property team today.
Apprentice Solicitor
BBrindley@LawBlacks.com
0113 322 2809
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Beth Brindley
