The amount of retail relief awarded will depend on which financial year it has been awarded on. The amounts are shown below:
Retail relief amounts per year
| Financial year | Amount of relief awarded | Last date to apply for the relief to be awarded | Cash cap amounts |
|---|---|---|---|
|
2024/25
|
75% | Not applicable but we can only backdate new claims to 01/04/2023. | From 1 April 2024, relief will be capped at £110,000. Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England. |
| 2023/24 | 75% | 30 September 2024 | From 1 April 2023, relief will be capped at £110,000. Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England. |
| 2022/23 | 50% | 30 September 2023 | From 1 April 2022, relief will be capped at £110,000 per business. Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England. |
| 1 July 21 - 31 March 22 | 66% | 30 September 2022 | From 1 July 2021, relief was capped at £105,000 per business, or £2 million per business where the business is in occupation of a property that was required, or would have been required, to close, based on the law and guidance applicable on 5 January 2021 |
| 1 April 21 - 30 June 21 | 100% | 30 September 2022 | N/A |
Government cash caps and subsidy control
- From 1 April 2024, relief will be capped at £110,000 per business. Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England.
- Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash caps. A ratepayer shall be treated as having a qualifying connection with another:
a. where both ratepayers are companies, and
- one is a subsidiary of the other, or
- both are subsidiaries of the same company; or
b. where only one ratepayer is a company, the other ratepayer (the “second ratepayer”) has such an interest in that company as would, if the second ratepayer were a company, result in its being the holding company of the other.
*“company” has the meaning given by section 1(1) of the Companies Act 2006. “holding company” and “subsidiary” have the meanings given by section 1159 of the Companies Act 2006.
- The Retail relief is likely to amount to subsidy. Any relief provided by the Council under this scheme will need to comply with the UKs domestic and international subsidy control obligations.
- To the extent that a Local Authority is seeking to provide relief that falls below the Minimal Financial Assistance (MFA) thresholds, the Subsidy Control Act allows an economic actor (e.g. a holding company and its subsidiaries) to receive up to £315,000 in a three-year period (consisting of the 2024/25 year and the two previous financial years). MFA subsidies cumulate with each other and with other subsidies that fall within the category of ‘Minimal or SPEI financial assistance’. BEIS COVID-19 business grants and any other subsidies claimed under the Small Amounts of Financial Assistance limit of the Trade and Cooperation Agreement should be counted towards the £315,000 allowance.
- In those cases where it is clear to the Council that the ratepayer is likely to breach the cash cap or the Small Amounts of Financial Assistance limit, then the authority will automatically withhold the relief. Otherwise, local authorities may include the relief in bills and ask the ratepayers, on a self-assessment basis, to inform the authority if they are in breach of the cash caps or MFA limit.
- The amount of relief will be recalculated in the event of a change of circumstances. This could include, for example, a backdated change to the rateable value or hereditament. This change of circumstances could arise during the year in question or during a later year.
Eligibility for retail relief 2024/25
Hereditaments that meet the eligibility for Retail, Hospitality and Leisure scheme will be occupied hereditaments which meet all of the following conditions for the chargeable day:
They are wholly or mainly being used as:
- as shops, restaurants, cafes, drinking establishments, cinemas or live music venues,
- for assembly and leisure; or
- as hotels, guest & boarding premises or self-catering accommodation
Hereditaments that are not eligible for retail relief are:
- Properties that are not reasonably accessible to visiting members of the public
- Unoccupied or empty hereditaments
- Financial services (e.g. banks, building societies, cash points, bureaux de change, short-term loan providers, betting shops)
- Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
- Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers, employment agencies, estate agents, letting agents)
- Post office sorting offices
Further guidance on eligibity can be found on the Government's retail relief page.
If you have not been awarded retail relief as from 1 April 2024 but believe you are eligible as you do not meet the government cash caps and subsidy control limits set above please email us at nndr@warwickdc.gov.uk clearly stating your business rate reference number and we will send you a declaration to complete to claim the relief.
If you wish to opt out of this additional relief being applied to your account please email us at nndr@warwickdc.gov.uk clearly stating your business rate account reference number and the relief you wish to opt out of. You may opt out of the relief for 2024 anytime up to 30 April 2025. Please note that if you have opted out of retail relief being applied we are not able to then re-award it at a later date within that financial year.
Policy
Warwick District Councils agreed policy for Retail, Hospitality and Leisure business rate relief.