Business Rates Holiday for Retail Businesses

The UK Government has confirmed that the one year 100% business rates holiday for retail businesses will apply to charity shops in England. In guidance issued to local councils, the following example of how the relief will be applied is included:

As shown in the example the relief is additional to existing charitable rates relief. Charity retailers will also receive the relief for each charity shop that they run.

The Government has confirmed that shops temporarily closed due to the government’s advice on COVID-19 should be treated as occupied and so eligible for the relief.

As called for in our letter to the Chancellor, the UK Government is seeking to remove existing state aid rules that would limit the amount a single charity retailer would receive. Local councils are being asked to prepare on the basis that state aid limits will not apply.

This relief will be delivered by local councils through existing discretionary powers. This avoids the need for new legislation which would slow down delivery of the relief.

The Scottish Government has announced a full year’s 100% non-domestic rates relief for retail, hospitality and tourism. Details on how this scheme will operate are yet to be published.

The Welsh Government has announced that retail, leisure and hospitality businesses with a rateable value of £51,000 or less will receive 100% non-domestic rates relief. Further details are yet to be announced.

Guidance issued to local Councils by the UK Government can be found here.