- 11th April 2020
- Posted by: Edward Kirkby
- Category: Coronavirus
To combat the financial pressure retail, hospitality and leisure businesses will face as a result of the required closures, the government is introducing a business rates holiday. In addition to this, cash grants of up to £25,000 will be made available to businesses within this sector.
The government has announced that the business rates holiday will now apply for the entire 2020/21 tax year (12 months), building on the 6-month period originally stated.
Who is eligible for a business rates holiday?
- Businesses based in England, who fall within the retail, hospitality or leisure sector.
The property that the business occupies must be wholly, or mainly, used for the following:
- As shops, restaurants cafes, drinking establishments, cinemas and live music venues
- For assembly and leisure
- As hotels, guest & boarding premises and self-catering accommodation
Initially the government announced that the business rates holiday would only apply to businesses with a rateable value of £51,000 and under – this has now been amended, and includes ALL businesses within the retail, hospitality and leisure sector.
How to apply
There is no action that businesses will need to take to initiate the business rates holiday. For all eligible businesses, your next council tax bill in April will reflect the business rates holiday.
If you have already received your council tax bill, your local authority will be reissuing the bill to factor in the business rates holiday. They will be working to complete this as soon as possible and you do not need to contact your local authority to request it – it will be re-issued automatically.
Cash grants for retail, hospitality and leisure businesses
In addition to the business rates holiday, the government is making cash grants of up to £25,000 per property available for businesses within these sectors.
What will you receive?
- Businesses in these sectors with a property that has a rateable value of up to £15,000 will receive a grant of £10,000.
- Businesses in these sectors with a property that has a rateable value of between £15,000 and less than £51,000 will receive a grant of £25,000.
Who is eligible?
To be eligible for one of the grants outlined above, a business must fulfil all of the below criteria:
- The business is based in England
- The business is in the retail, hospitality and/or leisure sector
- Your business has a rateable value of under £51,000
How to apply
As with the business rates holiday there is no action that eligible businesses need to take. Local authorities will be writing to all eligible businesses to advise of the next steps.
If your business does not pay business rates you will not be eligible for a grant under this scheme. The government has announced they will be providing support to businesses that pay little or no businesses under the Small Business Grant Scheme.
Please get in touch if you would like any further advice on the Coronavirus and government support.