The Government announced in the Budget on 29 October 2018 that it will provide a business rates Retail Discount scheme for occupied retail properties with a rateable value of less than £51,000 in each of the years 2019/20 and 2020/21.
Retail discount, one third off the bill after allowances for any mandatory reliefs and other discretionary reliefs, will be applied to the demand notices issued for 2019/20. This will be increased to 50% relief for 2020/21.
For the purposes of this discount, retail properties are those that are wholly or mainly being used as shops (providing goods or services to the public), restaurants, cafes and drinking establishments. From 01/04/20 this will be extended to Cinema's and Music Establishments.
The Chancellor as part of the Budget on 11th March 2020, announced additional NDR reliefs for Retail and Pubs, Retail Discount will be increased to 100% for retail properties with a rateable value of less than £51,000 (subject to state aid rules as set out below). Pub Relief will be increased to £5,000. We are currently amending our NDR bills to take account of these changes and there will be no need to apply to qualify for these.
Properties that will benefit from the relief will be occupied hereditaments with a rateable value of less than £51,000, that are wholly or mainly being used as shops, restaurants, cafes and drinking establishments.
We consider properties that are being used for the sale of goods (including food & drink) or the provision of services to visiting members of the public to include:
- Shops (such as: florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets, etc)
- Charity shops
- Post offices
- Furnishing shops/ display rooms (such as: carpet shops, double glazing, garage doors)
- Car/ caravan show rooms
- Second hand car lots
- Petrol stations
- Garden centres
- Art galleries (where art is for sale/hire)
- Hair and beauty services (such as: hair dressers, nail bars, beauty salons, tanning shops, etc)
- Shoe repairs/ key cutting
- Travel agents
- Ticket offices e.g. for theatre
- Dry cleaners
- PC/ TV domestic appliance repair
- Funeral directors
- Photo processing
- Tool hire
- Car hire
- Sandwich shops
- Coffee shops
- New from April 2020 - Cinema's and Music Establishments
Please note that the following types of uses are not eligible for the retail discount scheme:
i) Properties that are being used for the provision of the following services to visiting members of the public:
- Financial services (e.g. banks, building societies, cash points, bureau de change, payday lenders, betting shops, pawn brokers)
- Other services (e.g. estate agents, letting agents, employment agencies)
- Medical services (e.g. vets, doctors, osteopaths, chiropractors)
- Professional Services (e.g. solicitors, accountants, insurance agents/financial advisers, tutors)
- Post office sorting office; and
ii) Properties which are not reasonably accessible to visiting members of the public
The award of this relief must comply with EU law on State Aid (state funded support to business). An application form requires you to confirm that you have not received any other State Aid that exceeds in total €200,000, including any other relief you anticipate being granted for premises other than the one to which the declaration relates, under the De Minimis Regulations EC 1407/2013.
Further information on State Aid law can be found here.
Please remember - it is your responsibility to tell us if you have been awarded this discount but do not qualify.