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COVID-19: business rates holiday for affected businesses

27 March 2020: the government has announced details of a business rates holiday for the 2020-21 tax year for eligible retail, hospitality, leisure and nursery businesses, along with cash grants for organisations in certain sectors.

According to guidance released by the government, two reliefs are available for businesses in the retail, hospitality and leisure sectors.

  • A holiday from business rates for the 2020-2021 tax year. This applies to all businesses in these sectors.
  • Cash grants of £25,000. These will be given to businesses in these sectors with rateable value between £15,000 and £51,000 (in England). Small businesses with a rateable value below £15,000 (in England) will receive a cash grant of £10,000.

The reliefs will be administered by local authorities. Cash grants will be paid automatically. In Scotland, businesses will need to apply. Businesses will receive a bill showing no business rates charge for the 2020-2021 tax year. Those who had already received bills for the 2020-2021 tax year will be rebilled

Businesses should contact their local authority with any questions they may have about the scheme. Government guidance on the grant schemes is available here.

For details on eligibility and other additional features of the reliefs, click here for ICAEW’s practical business advice page on retail, hospitality and leisure businesses affected by coronavirus.

Business rates holiday for nurseries 

Nurseries will also receive a business rates holiday for the 2020-2021 tax year. Eligible businesses will receive a bill showing no business rates charge for the 2020-2021 tax year. 

Those who had already received bills for the 2020-2021 tax year will be rebilled. As above, businesses should contact their local authority with any questions they may have about the scheme.

For details on eligibility and other additional features of the scheme, click here for ICAEW’s practical business advice page on the business rates holiday for nursery businesses.

Get more information on support available for businesses affected by coronavirus from ICAEW’s dedicated help for business page.