The government has announced that it will continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief from 1 April 2021 to 30 June 2021.
This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties. Nurseries will also qualify for relief in the same way as other eligible properties.
The definition of “business” has yet to be defined in relation to group companies. The government believes this will mean the vast majority of eligible businesses receive 75% relief across the year.
There will be a period of business rates relief in Freeport tax sites in England, once they’ve been designated. Relief will be available to all new businesses, and certain existing businesses where they expand, until 30 September 2026. Relief will apply for five years from the point at which each beneficiary first receives relief.
In addition to the rate relief announced today, the government will be paying Restart Grants in England of up to £6,000 per premises for non-essential retail businesses and up to £18,000 per premises for hospitality and other sectors that are opening later, i.e. not on 12 April 2021.
Finally, the government has re-announced that it has frozen the business rates multiplier in England for 2021-22 with effect from 1 April 2021.
If you have any questions or would like to discuss any issues raised by the above, please contact Alan Vickery.