POSTED: 8 April 2020

Thursfields explains who benefits from 100% discount on business rates


Details of which companies can benefit from the 100% business rates discount in England have been clarified by Thursfields Solicitors.

Details of which companies can benefit from the 100% business rates discount in England have been clarified by Thursfields Solicitors.

The leading Midlands law firm was commenting after the government released the guidance for local authorities on the expanded business rates holiday it has announced for the 2020-21 tax year.

Tony Gibb, a director at Thursfields and head of the company’s Commercial Property department, explained the 100% discount had been offered to retail, hospitality, leisure, and nursery businesses who met the criteria.

He said: “Unlike the measures previously announced, there will be no rateable value limit on this relief, allowing both large and small business to benefit.

“The expanded discounts are particularly welcome news to larger business and pubs, both of which will enjoy increased eligibility under the new measures.”

Mr Gibb pointed out that the government’s guidance on which properties the relief applies to were those that are wholly or mainly being used as:

  1. shops, restaurants, cafes, drinking establishments, cinemas and music venues;
  2. assembly and leisure; and
  3. hotels, guest and boarding premises and self-catering accommodation.

The guidance, he said, provided examples of qualifying properties, including a wide range of shops and service providers, such as hair and beauty services, travel agents, and employment agencies.

Other qualifying businesses were those that served food and/or drink, such as takeaways, coffee shops, pubs, and bars, and entertainment premises such as cinemas, live music venues, sports and leisure facilities, public halls and hotels.

The government’s full guidance note can be accessed here.

Mr Gibb said: “Although extensive, the list the government has provided is not intended to be exhaustive and should be used as a guide for local authorities in considering which types of properties will be eligible for relief.

“Properties that will not be eligible include those used for financial, medical or professional services and Post Office sorting offices.”

He added: “Importantly, no action is required by businesses to access the scheme. It is up to local councils who may have to reissue bills, and they are expected to do this as soon as possible.”

For up-to-date information from the government on its other business support measures, visit: www.businesssupport.gov.uk.

Anyone with queries about business rates, their liability for payment or wanting to know more about any aspect of the government’s business support measures can contact Mr Gibb on tgibb@thursfields.co.uk or on 01905 677042.