Expanded Retail Discount 2021-22
For the period 01 July 2021 to 31 March 2022 a ratepayer who had to close their property during national lockdown cannot exceed more than £2million pound in discount over all the properties they occupy. If the property was not mandated to close during lockdown then the maximum amount of discount the business can receive is £105,000.
When applying you must check you have not already reached these limits.
1. Hereditaments that meet the eligibility for Expanded Retail Discount will be occupied hereditaments which meet all of the following conditions for the chargeable day:
a. they are wholly or mainly being used:
i. as shops, restaurants, cafes, drinking establishments, cinemas and live music venues,
ii. for assembly and leisure; or
iii. as hotels, guest & boarding premises and self-catering accommodation,
2. We consider shops, restaurants, cafes, drinking establishments, cinemas and live music venues to mean:
i. Hereditaments 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. Hereditaments that are being used for the provision of the following services to visiting members of the public:
- Hair and beauty services (such as: hairdressers, 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
- Employment agencies (these are excluded from the 2022/23 scheme)
- Estate agents and letting agents (these are excluded from the 2022/23 scheme)
- Betting shops (these are excluded from the 2022/23 scheme)
iii. Hereditaments that are being used for the sale of food and/or drink to visiting members of the public:
- Sandwich shops
- Coffee shops
iv. Hereditaments which are being used as cinemas
v. Hereditaments that are being used as live music venues:
- Live music venues are hereditaments wholly or mainly used for the performance of live music for the purpose of entertaining an audience. Hereditaments cannot be considered a live music venue for the purpose of business rates relief where a venue is wholly or mainly used as a nightclub or a theatre, for the purposes of the Town and Country Planning (Use Classes) Order 1987 (as amended).
- Hereditaments can be a live music venue even if used for other activities, but only if those other activities (i) are merely ancillary or incidental to the performance of live music (e.g. the sale/supply of alcohol to audience members) or (ii) do not affect the fact that the primary activity for the premises is the performance of live music (e.g. because those other activities are insufficiently regular or frequent, such as a polling station or a fortnightly community event).
3. We consider assembly and leisure to mean:
i. Hereditaments that are being used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities).
- Sport grounds and clubs
- Museums and art galleries
- Sport and leisure facilities
- Stately homes and historic houses
- Tourist attractions
- Wellness centres, spas, massage parlours
- Casinos, gambling clubs and bingo halls
ii. Hereditaments that are being used for the assembly of visiting members of the public.
- Public halls
- Clubhouses, clubs and institutions
4. We consider hotels, guest & boarding premises and self-catering accommodation to mean:
i. Hereditaments where the non-domestic part is being used for the provision of living accommodation as a business:
- Hotels, Guest and Boarding Houses
- Holiday homes
- Caravan parks and sites
The list below sets out the types of uses that the government does not consider to be an eligible use for the purpose of this discount (or any business broadly similar in nature)
i. Hereditaments 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, short-term loan providers)
- Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
- Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers)
- Post office sorting offices
ii. Hereditaments that are not reasonably accessible to visiting members of the public
iii. Hereditaments which are occupied but not wholly or mainly used for the qualifying purpose
Under the cash cap, no ratepayer can in any circumstances exceed:
£2m Expanded Retail Discount across all of their hereditaments in England if the property was mandated to close during national lockdown
£105,000 Expanded Retail Discount across all of their hereditaments in England if the property was NOT mandated to close during national lockdown
Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash caps. A ratepayer shall be treated as having a qualifying connection with another:
a. where both ratepayers are companies, and
i. one is a subsidiary of the other, or
ii. both are subsidiaries of the same company; or
b. where only one ratepayer is a company, the other ratepayer (the “second ratepayer”) has such an interest in that company as would, if the second ratepayer were a company, result in its being the holding company of the other.
The ratepayer must not have exceeded the Small Amounts of Financial Assistance limit of £343,000 over 3 years. This includes and retail relief you may be granted for 2022/23 and any BEIS business grants issued in 2020/21 and 2021/22.
Under the Expanded Retail Discount scheme, businesses may be eligible for a 100% discount from 1 April 2021 to 30 June 2021 followed by a 66% discount until 31 March 2022.
Red asterisk denotes a required answer.