Non Domestic Rates – Retail Rate relief 2019/20 and 2020/21
In the Autumn Budget 2018 the Government introduced a new Retail Relief which will be available for the years 2019/20 and 2020/21
Properties that will benefit from the relief will be occupied hereditaments with a rateable value of less than £51,000 , that are wholly of mainly being used as shops, restaurants, café’s and drinking establishments. From 1 April 2020 this has been extended to cinemas and music venues.
The Government consider shops, restaurants, café’s and drinking establishments to mean:
- Hereditaments that are being used for the sale of goods to visiting members of the public:
- a. Shops (such as florists, bakers, butchers, off licence, stationers, jewellers, chemists, hardware stores, supermarkets etc)
- b. Charity Shops
- c. Opticians
- d. Post offices
- e. Furnishing shops/ display rooms (such as carpet shops, double glazing, garage doors)
- f. Car / Caravan show rooms
- g. Second hand car lots
- h. Markets
- i. Petrol Stations
- j. Garden centres
- k. Art Galleries (where art is for sale/hire)
- Hereditaments that are being used for the provision of the following services to visiting members of the public:
- a. Hair and Beauty services (hair dressers, nail bars, tanning shops etc)
- b. Shoe repairs/key cutting
- c. Travel agents
- d. Ticket offices (for example for a theatre)
- e. Dry cleaners
- f. Launderettes
- g. PC/TV/domestic appliance repairs
- h. Funeral directors
- i. Photo processing
- j. DVD/Video rentals
- k. Tool hire
- l. Car hire
- Hereditaments that are being used for the sale of food and/or drink to visiting members of the public:
- a. Restaurants
- b. Takeaways
- c. Sandwich shops
- d. Coffee shops
- e. Pubs
- f. Bars
To qualify the hereditament should be wholly or mainly used as shown above, this is a test on use rather than occupation. Therefore hereditaments which are occupied but not wholly or mainly used for a qualifying purpose will not qualify for the relief.
The list below shows some uses that are not considered to be retail use for the purposes of this relief.
- Hereditaments that are used for the provision of the following services to visiting members of the public:
- a. Financial services (banks, building societies, cash points, bureau de change, payday lenders, betting shops, pawn brokers)
- b. Other services (estate agents, letting agents, employment agencies)
- c. Medical services (vets, dentists, doctors, osteopaths, chiropractors etc)
- d. Professional services (solicitors, accountants, insurance agents, financial advisors, tutors etc)
- e. Post office sorting office
- Hereditaments that are not reasonably accessible to visiting members of the public.
Apply for Retail Rate Relief
You can apply using the following eform.
The amount of relief available for each property for 2019/20 is calculated as approximately 33% of the balance that you would otherwise have to pay. From 1 April 2020 this has been increased to 50%. There is no relief available for properties with rateable value greater than or equal to 51,000 and empty properties do not qualify.
The eligibility for the relief and the relief itself is assessed and calculated on a daily basis. The retail relief will be applied against the net bill after all other reliefs have been applied.
You can have this relief on more than one property, subject to State Aid De Minimis Regulations. Read more State Aid guidance on https://www.gov.uk/guidance/state-aid