Business rates relief

Within business rates legislation are a number of available reliefs.

In this section you will be able to find out the relief schemes available for your business and the qualifying criteria you will need to meet.

You may be able to get business rates relief. This is sometimes automatic, but you may need to apply.

For further information and guidance, please take a look at our guidance document below.

Business Rate Relief Guidance

Retail, Hospitality and Leisure Relief

At the Autumn Budget on 30 October 2024, the Chancellor announced that eligible ratepayers will receive 40% relief on their business rates bills for the year 2025/26 up to a maximum cash cap of £110,000.

Relief will be provided to eligible occupied retail, hospitality and leisure properties in 2025/26.

In line with the conditions set by the government, a ratepayer may only claim up to £110,000 of support under the 2025/26 Retail, Hospitality and Leisure Relief Scheme for all of their eligible hereditaments. This cash cap applies at a Group company level (so holding companies and subsidiaries cannot claim up to the cash cap for each company) and also to organisations which, although not a company, have such an interest in a company that they would, if they were a company, result in its being the holding company.

Furthermore, the Retail, Hospitality and Leisure Relief Scheme is subject to the Minimal Financial Assistance limits under the Subsidy Control Act. This means no recipient can receive over £315,000 over a 3-year period (consisting of the current financial year and the 2 previous financial years). Covid business grants received from local government and any other subsidy claimed under the Minimal Financial Assistance or Small Amounts of Financial Assistance limit over the 3-year period should be counted.

Therefore, to claim the Retail, Hospitality and Leisure relief you must not have exceeded either the £110,000 cash cap for 2025/26 or the Minimal Financial Assistance limit of £315,000 over 3 years (including 2025/26). Find further details of the cash cap and subsidy control.

Further information can be found here Business Rates Relief: 2025/26 Retail, Hospitality and Leisure Scheme - GOV.UK

What to do next:

More information and next steps will be included in the letter issued with your annual Business Rates bill.

2023/24 Supporting Small Business (SSB) relief scheme

The Chancellor also announced that a new Supporting Small Business (SSB) relief scheme which will cap bill increases at £600 per year for any business losing eligibility for Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation. The Government has published guidance setting out the eligibility criteria for the scheme. This guidance can be found at 
https://www.gov.uk/government/publications/business-rates-relief-2023-supporting-small-business-relief-local-authority-guidance

Heat networks relief

You can get heat networks relief if your property is only used or mainly used as a ‘heat network’.

A heat network supplies heating or cooling to other properties from a central source. To be eligible, the heat network must:

  • take its energy from a low carbon source
  • supply heating and cooling to other properties - for example, homes, shops, public buildings, hospitals and office

The heat network must not supply heat or cooling for industrial use - for example, to create products in factories.

You will not pay business rates if your property is eligible for heat networks relief.

Contact the Valuation Office Agency (VOA) to check if your property is eligible for heat networks relief.

Report changes to make sure you’re paying the right amount and do not get a backdated increase in your bill or overpay your bill.  Contact the VOA if the property is no longer only or mainly used as a heat network.

Improvement Relief

Following the business rates review during 2020 and 2021 the Government announced it would be introducing a new Business Rates Improvement Relief.

This became law with the Non-Domestic Rating (Improvement Relief) (England) Regulations 2023.

Improvement Relief (from April 2024) will support businesses wishing to invest in their property. It will ensure that no ratepayer will face higher business rates bills for 12 months as a result of qualifying improvements to a property they occupy.

For further details about the scheme please read use the weblink:

 Business rates relief: Improvement relief - GOV.UK

 

 

 

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