Business Rate Changes

Last updated Monday 8 March - 10:12

In his budget on 3 March 2021, the Chancellor announced an extension to the business rates holiday for businesses in the retail, hospitality and leisure sector until the end of June 2021.  He also confirmed that rates would be discounted by two-thirds for the remaining nine months of the tax year. The amount that a business can receive will be capped at £2m for properties that had to be closed on 5 January 2021, or £105,000 per business for other eligible properties.

Properties that will benefit from the relief will be those that are wholly or mainly being used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues for assembly and leisure
  • as hotels, guest & boarding premises and self-catering accommodation

Government Guidance Estate agents, lettings agencies and bingo halls that have closed as a result of Covid-19 measures to restrict the spread of the virus will be exempted from business rates in 2020-21.

Support for nursery businesses that pay business rates.  The Government will introduce a business rates holiday for nurseries in England for the 2020 to 2021 tax year.  Properties that will benefit from the relief will be those occupied by providers on Ofsted’s Early Years Register which are wholly or mainly used for the provision of the Early Years Foundation Stage.  There is no action for businesses to take. This will apply to the next council tax bill in April 2020. However, local authorities may have to reissue bills to exclude the business rate charge. They will do this as soon as possible.

You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator.

Further guidance for local authorities is available in the nursery discount guidance.