Business rates refer to the amount required to be paid to the government by businesses on most non-domestic properties like shops, offices, warehouses, pubs, etc. In Budget 2018, the government had announced that it would provide a 50% Business Rates Retail Discount, for 2019/20 and 2020/21. Therefore, the government has now announced that they would increase the discount to 100% and extend it to include the leisure and hospitality sectors keeping it in line with the Budget 2018 and as an aid to businesses in the response to coronavirus.
Thus, the relief basically allows businesses a business rate holiday for the tax year 2020-21. In other words, the businesses eligible for business rates tax relief would not have to pay the rates for the year 2020-21.
Eligibility to Business Rates Relief
Take a look at the table below to know which all businesses have been allowed business rates holiday for the tax year 2020-21:
| Industry | Eligibility | Properties covered under the relief |
| Retail, hospitality and/or leisure sector | a) Business is based in England b) Business is in the retail, hospitality and/or leisure sector | Business property is a: a) shop b) restaurant, café, bar or pub c) cinema or live music venue d) assembly or leisure property - for example, a sports club, a gym or a spa e) hospitality property - for example, a hotel, a guest house or self- catering accommodation |
| Nursery business | Business is based in England | Property: a) occupied by providers on Ofsted’s Early Years Register b) wholly or mainly used for the provision of care and education for children up to 5 years old (the Early Years Foundation Stage) |
Features of Business Rates Relief
- Local authority-run nurseries are not eligible to apply for the grant.
- The relief applies for business rates bills for the tax year 2020 - 2021. The concerned The local council may have to reissue the bill as soon as possible.
- Click here to calculate the amount of business rates relief, which is basically the whole amount of business rate otherwise payable.
How to apply for a business rate relief?
You do not need to apply for business rates relief. If you are eligible for the discount then it shall be applied by your local authority automatically. In case of any queries, click here to contact your local authority.
