Business retail relief
Latest update: Business rates support package
The Government has announced plans to provide an extra, targeted business rates support package for businesses which have been unable to benefit from the existing £16 billion business rates relief for retail, hospitality and leisure businesses. The £1.5 billion funding pot which is to be distributed amongst all local authorities will provide businesses within Birmingham access to an additional £25m in rate relief. We are currently waiting for the relief legislation to be passed by central government and the subsequent scheme guidance to be released to local authorities. Once we are in receipt of this guidance a further update will be provided.
The Government announced in 2018 a business rates retail relief scheme for occupied retail properties with a rateable value of less than £51,000. The value of relief was be one third of the bill in 2019 to 2020.
The Government have announced a range of support for businesses in response to the impact of COVID-19. For the 2020 to 2021 financial year:
- The ratable value limit of £51,000 has been removed
- Qualifying properties have been extended to cover properties in the retail, leisure and hospitality sectors
- The amount of relief will be 100% meaning that qualifying businesses will not have any business rates to pay for the 2020 to 2021 financial year.
Although your businesses may not have to pay business rates for the 2020/21 financial year you should still inform Birmingham City Council of any changes in your circumstances.
Properties that will benefit from this relief
For the 2020 to 2021 financial year businesses that benefit from the relief will be occupied premises (or premises that would have been occupied if they had not been closed due to Covid-19) that are wholly or mainly being used for retail, leisure and hospitality. This includes:
i. Premises that are being used for the sale of goods to visiting members of the public:
- Shops (such as: florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets, etc)
- Charity shops
- Post offices
- Furnishing shops/ display rooms (such as: carpet shops, double glazing, garage doors)
- Car/ caravan show rooms
- Second hand car lots
- Petrol stations
- Garden centres
- Art galleries (where art is for sale/hire)
ii. Premises that are being used for the provision of the following services to visiting members of the public:
- Hair and beauty services (such as: hair dressers, nail bars, beauty salons, tanning shops, etc)
- Shoe repairs/ key cutting
- Travel agents
- Ticket offices e.g. for theatre
- Dry cleaners
- PC/ TV/ domestic appliance repair
- Funeral directors
- Photo processing
- Tool hire
- Car hire
- Betting Shops qualify for this relief from 1 April 2020
- Estate agents and letting agents qualify for this relief from 1 April 2020
- Employment agencies qualify for this relief from 1 April 2020
iii. Premises that are being used for the sale of food and/ or drink to visiting members of the public:
- Sandwich shops
- Coffee shops
iv. Premises that are being used as cinemas qualify for this relief from 1 April 2020
v. Premises that are being used as live music venues qualify for this relief from 1 April 2020
- These are premises that are wholly or mainly used for the performance of live music for the purposes of entertaining an audience. This does not include premises wholly or mainly used as nightclubs or theatres.
- Premises can be a live music venue even if used for other activities. However, these activities must be either ancillary (e.g. sale of alcohol to the audience) or infrequent enough to not affect the primary activity (such as a fortnightly community event).
vi. Premises being used for the provision of sport, leisure and facilities to visiting members of the public qualify for this relief from 1 April 2020:
- Sports grounds and clubs
- Museums and art galleries
- Sport and leisure facilities
- Stately homes and historic houses
- Tourist attractions
- Casinos and gambling clubs
vii. Premises being used for the assembly of visiting members of the public qualify for this relief from 1 April 2020:
- Public halls
- Clubhouses, clubs and institutions
viii. Premises where the non-domestic part is being used for the provision of living accommodation as a business qualify for this relief from 1 April 2020:
- Hotels, guest and boarding houses
- Holiday homes
- Caravan parks and sites
The list below sets out the types of uses that are not considered to be retail use for the purpose of this relief.
i. Premises that are being used for the provision of the following services to visiting members of the public:
- Financial services (e.g banks, building societies, cash points, bureaux de change, payday lenders)
- Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
- Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers)
- Post office sorting offices
ii. Premises that are not reasonably accessible to visiting members of the public
How much relief is available?
The total amount of relief available for each property will be one third of the bill in 2019 to 2020 and 100% of the bill in 2020 to 2021. The eligibility for the relief and the relief itself will be assessed and calculated on a daily basis.
Applying for the relief
If you haven’t received this relief and wish to apply
Please complete the enquiry form
We will assess your application and if you meet the prescribed conditions the award will be made and you will be sent a new bill.