The government has announced details of a business rates holiday for the 2020-21 tax year for eligible retail, hospitality, leisure and nursery businesses, along with cash grants for organisations in certain sectors.
According to guidance two reliefs are available for businesses in the retail, hospitality and leisure sectors:
A holiday from business rates for the 2020-2021 tax year
- This applies to all businesses in these sectors;
- Businesses will receive a bill showing no business rates charge for the 2020-2021 tax year
- Those who had already received bills for the 2020-2021 tax year will be rebilled
- The reliefs will be administered by local authorities; there is no action for you
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
You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator.
Cash grants
- £25,000 for businesses in these sectors with rateable value between £15,000 and £51,000 (in England).
- £10,000 for small businesses with a rateable value below £15,000 (in England)
- Cash grants will be paid automatically
- Businesses should contact their local authority with any questions they may have about the scheme. Government guidance on the grant schemes is available here.
* Hereditament – ‘any item of property, either a corporeal hereditament (land or a building) or an incorporeal hereditament (such as a rent), that can be inherited.