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Retail relief 2019-20 and 2020-21

In the Autumn Budget 2018 the Government introduced a new Retail Relief which will be available for 2 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.

 

The Government consider shops, restaurants, café’s and drinking establishments to mean:

  • Shops (such as florists, bakers, butchers, off licence, stationers, jewellers, chemists, hardware stores, supermarkets etc)
  • Charity Shops
  • Opticians
  • Post offices
  • Furnishing shops/ display rooms (such as carpet shops, double glazing, garage doors)
  • Car / Caravan show rooms
  • Second hand car lots
  • Markets
  • Petrol Stations
  • Garden centres
  • Art Galleries (where art is for sale/hire)

  • Hair and Beauty services (hair dressers, nail bars, tanning shops etc)
  • Shoe repairs/key cutting
  • Travel agents
  • Ticket offices (for example, for a theatre)
  • Dry cleaners
  • Launderettes
  • PC/TV/domestic appliance repairs
  • Funeral directors
  • Photo processing
  • DVD/Video rentals
  • Tool hire
  • Car hire

 

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.

1. Hereditaments that are used for the provision of the following services to visiting members of the public:

  • Financial services (banks, building societies, cash points, bureau de change, payday lenders, betting shops, pawn brokers)
  • Other services (estate agents, letting agents, employment agencies)
  • Medical services (vets, dentists, doctors, osteopaths, chiropractors etc)
  • Professional services (solicitors, accountants, insurance agents, financial advisors, tutors etc)
  • Post office sorting office

2. Hereditaments that are not reasonably accessible to visiting members of the public.

 

The amount of relief available for each property is calculated as approximately 33% of the balance that you would otherwise have to pay. 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 Gov.uk website.

All eligible businesses will be automatically awarded Retail Relief. Your 2019/20 annual bill will not include Retail Relief so you will need to pay your first instalment as billed until you receive your revised bill in April.

If you have not received a revised rate demand notice but believe you are eligible or if you believe that by receiving this award you will be exceeding State Aid De Minimis Regulations, please contact the business rates team to review your business rates account.

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