COVID-19 SUPPORT FOR BUSINESSES IN ENGLAND & WALES PEGGED TO BUSINESS RATES
ENGLAND The UK Government has put in place a £22 billion support package for businesses in England through business rates relief and business grants.
Business rates ‘holiday’ for retail, hospitality and leisure businesses There will be a complete business rates ‘holiday’ for all retail, hospitality and leisure businesses in England for the 2020/2021 tax year, irrespective of Rateable Value.
Properties closed temporarily due to the Government’s advice on COVID-19 will be treated as occupied for the purposes of granting the relief. Some initial exclusions for relief were removed. Premises closed as a result of COVID-19 restrictions are also eligible for the relief and the rates ‘holiday’ was extended to those in the A2 category - including estate agents, professional services and bookmakers. Nurseries benefit, providing that they are occupied by providers on Ofsted’s Early Years Register and are wholly or mainly used for the provision of the Early Years Foundation Stage.
The expanded business rates retail discount will cost the Exchequer £10.06 billion in lost tax revenues during 2020/2021. 354,670 premises will benefit from the property tax break; worth an average of £28,367 per property this financial year (1st April). Nearly a third of the overall cost of the tax relief, a total of £3.03 billion, will cover the cost of the rates ‘holiday’ for 73,140 firms within the Capital. 7,407 premises in Westminster alone save £943.95 million in total.
6
