Business rates relief
At the Budget on 27 October 2021 the Chancellor announced the introduction of a new business rates relief scheme for retail, hospitality and leisure properties worth almost £1.7 billion in 2022/23. This will support the businesses that make our high streets and town centres a success and help them to evolve and adapt to changing consumer demands.
The 2022/23 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.
For businesses affected by these discounts, your business rates bill has been issued with the discount applied for the full year to 31 March 2023. Any resulting liability will be payable by instalments from April 2022 as this is the first date that a liability and payments become due.
If your business has received its business rates bill and you have not had the discount applied and you believe you may be eligible, an application form can be found here.
Should you not wish to receive these discounts, perhaps due to the potential for breaching the monetary cap as highlighted above, please download, print, complete and send us the Expanded Retail Discount refusal form. Or, contact us by sending an e-mail to email@example.com. The discount will then be removed, and a revised bill issued.
These changes will have effect for 2022/23 only.
Excluded from this relief
Businesses that are being used for the provision of the following services to visiting members of the public:
- financial services (for example banks, building societies, cash points, bureaux de change, short-term loan providers)
- medical services (for example vets, dentists, doctors, osteopaths, chiropractors)
- professional services (for example solicitors, accountants, insurance agents/ financial advisers, employment agencies, estate agents, letting agents)
- post office sorting offices
Businesses that are not reasonably accessible to visiting members of the public.
COVID-19 Additional Relief Fund (CARF)
On 25 March 2021 the Government announced a new COVID-19 Additional Relief Fund (CARF) of £1.5 billion. The fund will be available to support those businesses affected by the pandemic but that are ineligible for existing support linked to business rates.
On 15th December 2021 the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill 2021 attained Royal Assent.
This Bill allows Local Authorities to design a new COVID-19 Additional Relief Fund (CARF) Discretionary scheme to reduce Business Rate chargeable amounts in respect 2021/22 subject to Government guidance provided.
Government guidance provides the following exclusions:
- Ratepayers who would have been eligible for the Extended Retail Discount scheme (ie retail, hospitality and leisure) or Nursery Discount for 2021/22.
- Awards will only be in relation to occupied premises. No eligibility for businesses when the hereditament was unoccupied (other than closed temporarily due to government advice on COVID-19)
Support to be directed to:
- Ratepayers adversely affected by the pandemic and have been unable to adequately adapt.
Payments under this scheme are subject to Subsidy Allowance conditions, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU.
Businesses that have already received grant payments that equal the maximum permitted subsidy allowances will not be eligible to receive funding.
For further information please read Section 19-29 of Covid-19 additional relief local authority guidance.
Lambeth Council’s priorities for the allocation of the Covid-19 Additional Relief Scheme (CARF) are designed to provide direct support to ratepayers who have been adversely affected by the pandemic and are not eligible for existing support linked to business rates.
Our aim is to ensure we provide targeted support, using our knowledge of businesses operating in Lambeth and analysing the data to identify businesses that will qualify.
Eligible businesses identified will receive a 27 percent* reduction of net business rate liability after all other reliefs for the 2021/22 tax year (1 April 2021 to 31 March 2022). The relief will be calculated based on 2021/22 business rates bills and will be applied directly to business rates accounts.
To be eligible for relief you must be a ratepayer liable for the business rates and continuously occupying the hereditament in Lambeth for the period 1 April 2021 to 31 March 2022. The exception to this is if the premises/hereditament had to close temporarily due to the government’s advice on Covid-19 during any period of government lockdowns.
The council has selected businesses to receive the limited funds available, based on government guidance, and the business support already provided. All eligible businesses will be contacted by letter during May 2022, there is no application process.
The Covid-19 Additional Relief Fund (CARF) relief awards are made on a discretionary basis by the council and are subject to available funds. Decisions are final and there is no formal appeals process, so if you do not receive any communication then you have not been selected for an award.