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Business Rates Relief: COVID-19

Mohit Baheti | Online Account Filing

Mohit Baheti | May 21, 2020

Business Rates Relief | Online Account Filing

Business rates refer to the amount required to be paid to the government by businesses on most non-domestic properties like shops, offices, warehouses, pubs, etc. In Budget 2018, the government had announced that it would provide a 50% Business Rates Retail Discount, for 2019/20 and 2020/21. Therefore, the government has now announced that they would increase the discount to 100% and extend it to include the leisure and hospitality sectors keeping it in line with the Budget 2018 and as an aid to businesses in the response to coronavirus.

Thus, the relief basically allows businesses a business rate holiday for the tax year 2020-21. In other words, the businesses eligible for business rates tax relief would not have to pay the rates for the year 2020-21.

Eligibility to Business Rates Relief

Take a look at the table below to know which all businesses have been allowed business rates holiday for the tax year 2020-21:

IndustryEligibilityProperties covered under the relief
Retail, hospitality and/or leisure sectora) Business is based in England

b)
Business is in the retail, hospitality and/or leisure sector
Business property is a:

a)
shop

b)
restaurant, café, bar or pub

c)
cinema or live music venue

d)
assembly or leisure
property - for example, a sports club, a gym or a spa

e)
hospitality property - for example, a hotel, a guest house or self-
catering accommodation
Nursery businessBusiness is based in EnglandProperty:

a)
occupied by providers
on Ofsted’s Early Years
Register

b)
wholly or mainly used
for the provision of
care and education for
children up to 5 years
old (the Early Years
Foundation Stage)

Features of Business Rates Relief

  1. Local authority-run nurseries are not eligible to apply for the grant.
  2. The relief applies for business rates bills for the tax year 2020 - 2021. The concerned The local council may have to reissue the bill as soon as possible.
  3. Click here to calculate the amount of business rates relief, which is basically the whole amount of business rate otherwise payable.

How to apply for a business rate relief?

You do not need to apply for business rates relief. If you are eligible for the discount then it shall be applied by your local authority automatically. In case of any queries, click here to contact your local authority.

Dave Jangid | Online Account Filing

Mohit Baheti | May 21, 2020

Note: Please note that the content of the above article and the aforementioned information are solely for the purpose of awareness and are informative in nature. The content is designed with intent to ease the understanding while preserving the essence and importance of the compliance rules and shall not be considered as an ultimate replication of the rules. Online Account Filing does not own any responsibility whatsoever for any unpleasant event that may arise due to the misinterpretation of a specific part or whole of the information.
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