Expanded Retail discount
The Retail, Hospitality and Leisure Scheme was first introduced with effect from 1 April 2020 and provided 100% relief to all eligible businesses until the 30 June 2021.
The scheme continued from 1 July 2021 until 31 March 2022 providing eligible businesses with a 66% discount on their rates charge subject to a cap of £2,000,000 if your business was required to close as at 5 January 2021 or £105,000 if your business was permitted to stay open at that date (please note there is also a total cumulative cap of £2,000,000 for all of your properties).
The scheme continued with effect from 1 April 2022 until 31 March 2023 by providing eligible businesses a 50% discount on their rates charge subject to a cash cap of £110,000 per business.
For the 2023/24 and 2024/25 financial years the discount continued at a 75% discount for eligible retail, hospitality and leisure businesses subject to a cash cap of £110,000 per business.
For 2025/26 eligible ratepayers will receive 40% relief on their business rates bills for the year 2025/26. In line with the conditions set by the government, a ratepayer may only claim up to £110,000 of support under the 2025/26 Retail, Hospitality and Leisure Relief Scheme for all of their eligible hereditaments. This cash cap applies at a Group company level (so holding companies and subsidiaries cannot claim up to the cash cap for each company) and also to organisations which, although not a company, have such an interest in a company that they would, if they were a company, result in its being the holding company.
Furthermore, the Retail, Hospitality and Leisure Relief Scheme is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). The subsidies chapter within the TCA only applies to subsidies over the value of approximately £343,000 per beneficiary over a 3-year period (consisting of the current financial year and the two previous financial years) (the Small Amounts of Financial Assistance limit). Extended Retail Discounts granted in 2020/21 or 2021/22 do not count towards the limit. Covid business grants received from local government and any other subsidy claimed under the Small Amounts of Financial Assistance limit over the 3-year period should be counted.
Detailed guidance is available on the government website.