Business and investment Business rates relief and exemptions

Retail, Hospitality and Leisure Business Rates Relief Scheme 2022-23

About the scheme

For the financial year 2022/23 the Retail, Hospitality and Leisure Business Rates Relief Scheme will provide eligible, occupied retail, hospitality and leisure properties with a 50% relief, up to a cash-cap limit of £110,000 per business.

As well as the cash-cap limit, relief provided under this scheme must comply with the UK’s domestic and international subsidy control obligations. 

This relief falls within the Small Amounts of Financial Assistance Allowance, Article 364 of the UK-EU Trade and Cooperation Agreement. It allows an ‘economic actor’, such as a holding company and its subsidiaries, to receive up to 325,000 Special Drawing Rights* in a three-year period. At 15 February 2022 this is equivalent to £336,335. The relevant financial years are 2020-21, 2021-22 and 2022-23.

Discounts previously granted under the Expanded Retail Discount scheme in 2020-21 or 2021-22 do not count towards the £336,335 allowance.

Covid business grants received from local government, for example the Omicron Hospitality and Leisure Grant (OHLG), and any other subsidy claimed under the Small Amounts of Financial Assistance limit over the 3-year period, should be counted.

*The Special Drawing Rights Exchange Rate can be found here

Who can apply

New occupiers and occupiers of newly created properties can apply for this discount.

Applications must be made within six months of the end of the financial year to which it relates and must be received by us in sufficient time to enable a decision to be made.

Businesses already receiving Retail, Hospitality and Leisure Relief when bills are produced do not need to apply.

You are not eligible for Retail, Hospitality and Leisure Relief if you were refused Expanded Retail Discount which was introduced in 2021-22. Any application made in these circumstances will not be considered.

We will consider each award based on individual merits. We may decline an application, or withdraw an award, where the retail property and business does not support our wider objectives or is determined to be having a detrimental impact on the neighbourhood or community.

Eligible properties

Properties that will benefit from the relief will be hereditaments that are wholly or mainly being used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
  • for assembly and leisure; or
  • as hotels, guest and boarding premises and self-catering accommodation.

The Government has provided guidance on the types of businesses that fall within each of the above categories.

Ineligible properties

These are not considered to be eligible uses for the purpose of this discount:
1. Properties that are being used for the provision of the following services to visiting members of the public:

  •  financial services such as banks, building societies, cash points, bureau de change, payday lenders, betting shops, pawn brokers;
  • medical services such as vets, dentists, doctors, osteopaths, chiropractors;
  • professional services such as solicitors, accountants, insurance agents/ financial advisers, tutors, employment agencies, estates agents, letting agents; and
  • post office sorting offices.

2. Properties that are not reasonably accessible to visiting members of the public.
3. Businesses that do not support our wider objectives or have a detrimental impact on neighbourhoods and communities.

How it works

Eligibility for Retail, Hospitality and Leisure Business Rates Relief and the discount itself will be assessed and calculated on a daily basis.

The discount will be applied against the net bill after all mandatory reliefs and certain discretionary reliefs have been applied. Other reliefs and discounts that can be provided at the local authority’s discretion will be applied after any Retail, Hospitality and Leisure Business Rates Relief.

Where the net rate liability for the day is nil after all other mandatory reliefs, such as Small Business Rate Relief, have been applied, Retail Hospitality and Leisure Business Rates Relief will not apply.

Ratepayers that occupy more than one property will be entitled to the discount for each of their eligible properties up to the maximum £110,000 cash-cap per business.

 

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