Covid-19 Additional Relief Fund (CARF)
The Government recently announced a new COVID-19 Additional Relief Fund (CARF) of £1.5 billion.
The fund will support businesses affected by the pandemic but do not qualify for existing support linked to Business Rates.
If you are have already received Covid-19 business support funding, you must make sure you comply with Covid-19 business grant subsidy allowance rules to qualify for more help.
Business Rates Retail Relief 2022/23
At the Budget on 27 October 2021, the Chancellor announced that eligible ratepayers will receive 50% relief on their business rates bills for the year 2022/23 up to a maximum cash cap of £110,000.
Relief will be provided to eligible occupied retail, hospitality and leisure properties in 2022/23.
In line with the conditions set by the government, a ratepayer may only claim up to £110,000 of support under the 2022/23 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.
The Retail, Hospitality and Leisure Relief Scheme is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). The subsidies chapter within the TCA only applies to subsidies over the value of approximately £343,000 per beneficiary over a 3-year period (consisting of the current financial year and the two previous financial years) (the Small Amounts of Financial Assistance limit).
Extended Retail Discounts granted in 2020/21 or 2021/22 do not count towards the limit. Covid business grants received from local government and any other subsidy claimed under the 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 2022/23 or the Small Amounts of Financial Assistance limit of £343,000 over 3 years (including 2022/23).
Business Rates discounts
In his budget on 3 March 2021, the Chancellor announced the 100% Business Rates holiday had been extended until 30 June 2021. This means, eligible businesses - namely retail, leisure and hospitality businesses - will pay nothing for another three months from 1 April 2021.
After that they will receive a two thirds discount. This will be capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.
Read the Government guidance on extended Business Rates discounts for more information.
Advice and support
Our Business Advice and Support page has more information on other types of financial help available.
Business Rates will not be payable for the first three months that a property is empty. After the three month period rates will be charged at 100% unless the property is exempt e.g. Listed buildings, empty properties owned by charities and community amateur sports clubs. NB. Industrial property will be exempt for 6 months, or has a rateable value of less than the following limits:
- Up to 31 March 2009 RV 2,200
- 01 April 2009 - 31 March 2010 RV 15,000
- 01 April 2010 - 31 March 2011 RV 18,000
- 01 April 2011 - 31 March 2017 RV 2,600
- From 01 April 2017 RV 2,900
Please note - due to the lowering of the Rateable Value limit from 18,000 to 2,600 with effect from 01 April 2011, you may now be subject to an empty business rate charge.
In brief, office and retail premises receive 100% relief for the first three months, and industrial and warehouse premises will receive 100% for the first six months, from when the property becomes empty.
All rate relief for these properties will end after this time and Non Domestic Rates will be chargeable in full. You can find more information about business rates at the My Business Rates website.
Partially Empty Property
If only part of the premises is being used, it may be possible to reduce the amount of business rates that are paid. If you wish to claim this relief you should contact us immediately, and we will arrange for one of our Visiting Officers to visit your premises. The relief would stop if:
- The unoccupied part becomes occupied
- The property becomes completely unoccupied
Small Business Rate Relief
From 1 April 2017 Small Business Rate Relief (SBRR) will permanently double from 50% to 100%. The £6,000 and £12,000 thresholds will increase to £12,000 and £15,000 respectively.
Therefore, those with rateable values below £12,000 that meet the eligibility criteria will receive 100% relief. This relief will decrease on a sliding scale if your rateable value is between £12,000 and £15,000.
The threshold for the standard business rates multiplier will also increase from £18,000 (£25,500 in London) to a rateable value of £51,000. This means that if the rateable value is between £15,001 and £51,000 the bill will be calculated using the small business non domestic rating multiplier if appropriate.
If a property has a rateable value of less than £18,000 from 1 April 2010 you may qualify for Small Business Rate Relief (SBRR). To qualify for SBRR the ratepayer must:
- Occupy only one property, or
- Occupy one main property and other additional properties providing those additional properties each have rateable values less than £2,900.
Please note: You are only eligible to claim Small Business Rate Relief on ONE property regardless of how many properties you occupy. The rateable value of a single property or the aggregate total value of all the properties must be less than £20,000 (or £28,000 within Greater London). Ratepayers can only claim relief in respect of one property. However, you may now continue to receive SBRR for a period of 12 months further to occupying another property.
The Scheme prior to 1 October 2010 - Eligible properties with a rateable value of less than £6,000 will receive 50% relief. This relief will decrease on a sliding scale of 1% for every £120 in rateable value over £6,000 and up to £12,000, at which point no relief is applicable. In addition, eligible properties will have their rate bill calculated on the small business non-domestic rating multiplier.
Changes from October 2010 - 31 March 2017 - The Government has temporarily changed the scheme so that businesses who qualify and whose rateable value is less than £6,000 will get 100% relief. This will decrease on a sliding scale if your rateable value is between £6,000 to £12,000. If the rateable value is between £12,001 and £17,999 the bill will be calculated using a lower multiplier than non-qualifying businesses.
Businesses must apply in writing and there are time limits on how long you have to apply so please don't delay - apply as soon as you can.
Please note: If your business qualifies for Mandatory Charity Relief you cannot get SBRR as well.
You can get further information on Small Business Rate Relief and do a trial calculation by visiting the My Business Rates website.
Rural Rate Relief
Businesses in a pdf Rural Settlement (6 KB) could qualify for Mandatory or Discretionary Rural Rate Relief on their Non Domestic Rates bill. A Rural Settlement is a defined area with a population of less than 3000.
To qualify for Mandatory Relief, the business premises must be the only Post Office, general store, public house or petrol filling station in the rural settlement. Food shops may also qualify for relief and do not need to be the only food shop in the rural settlement.
In addition to Mandatory Relief for those businesses mentioned above, we are able to grant Discretionary Relief. Other types of businesses in a rural settlement may also qualify for just the Discretionary Relief.
In all cases, the business must be used for purposes which are of benefit to the local community. A list of the areas that are designated Rural Settlements is available on our website or at our shops at Malvern, Tenbury Wells and Upton.
Mandatory Rural Rate Relief: To qualify for 100% Mandatory Rural Rate Relief, your business premises must:
1. Be within the boundaries of a qualifying rural settlement.
2. Have a rateable value of not more than £8,500 in the case of a Post Office, general store or food shop.
3. Have a rateable value of not more than £12,500 in the case of a public house or petrol filling station.
4. Be used in whole or in part, as a general store, Post Office or both, or as a public house, food shop or petrol filling station.
5. Be either the only general store, the only Post Office, the only public house or the only petrol filling station in the rural settlement.
Please note: it is possible for both a general store and a Post Office in the same rural settlement to qualify for Mandatory Rural Rate Relief.
Please note: if you do not qualify for Mandatory Relief, you may still qualify for Discretionary Relief dependent on meeting certain criteria.
Discretionary Rural Rate Relief: We may grant up to 50% relief to any general store, food shop, Post Office, public house or petrol filling station which does not qualify for the Mandatory Rural Rate Relief.
Other types of business can also apply for Discretionary Rural Rate Relief of 50% provided that it:
1. Is within the boundaries of a qualifying rural settlement.
2. Has a rateable value of less than £16,500.
3. Is used for purposes which are of benefit to the local community, and
4. Is reasonable for us to make such a decision having regard to the interests of persons liable to pay Council Tax set by it. To download an application form click on one of the links below:
- pdf Mandatory Rural Rate Relief application form. (143 KB)
- pdf Discretionary Rural Rate Relief application form. (146 KB)
Charitable and Discretionary Relief
Registered charities, charitable organisations and Community Amateur Sports Clubs (CASC's) are entitled to relief from rates on any non-domestic property, that is wholly or mainly used for charitable purposes.
Relief is given at 80 per cent of the bill. We have the discretion to give a further 20% relief on the remaining bill depending upon what the premises are used for.
We also have the discretion to give up to 100% discretionary relief on all or part of any rate bill, for property occupied by certain non-profit making organisations for example; sports clubs, societies, village halls and youth associations.
If you wish to apply please contact us or use our pdf Mandatory and Discretionary Rate Relief application form. (116 KB) You can get further information on Rate Relief by visiting the My Business Rates website.
Businesses may be entitled to a reduction from rates if they are suffering hardship, and they can show that the local community would suffer a loss if the business was to close. As each case needs to be determined on its merits, please contact us for further information.
Don't forget: if you move into, out of, or within Malvern Hills you need to let us know as this will affect your bill. You can also find further information about Business Rates on the Businesslink website.