As part of the Autumn Statement on Wednesday 22 November 2023, the Chancellor announced that the business rates relief scheme for retail, hospitality, and leisure properties will be extended to Monday 31 March 2025.
It aims to support the businesses that make our high streets and town centres a success and help them to evolve and adapt to changing consumer demands.
About the scheme
The Retail, Hospitality and Leisure Business Rates Relief scheme will provide eligible, occupied retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business for applicable chargeable days from 1 April 2023 to 31 March 2025.
This relief scheme is likely to count as a subsidy, so can only be claimed if the business has not already exceeded the permitted UK Subsidy Control legislation, specifically the Minimal Financial Assistance limit (MFA).
The responsibility lies with the business, on a self-assessment basis, that by accepting the relief, they will not breach either the Cash cap or the MFA limit.
The Cash Cap explained
Under the cash cap, no ratepayer can in any circumstances exceed receiving up to £110,000, known as the cash cap, and this is applied cumulatively across all their properties 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:
where both ratepayers are companies, and
one is a subsidiary of the other, or
both are subsidiaries of the same company; or
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.
Please note the responsibility lies with the business, on a self-assessment basis, to determine if by accepting the relief that they are not breaching the cash cap.
UK Subsidy Control – Minimal Financial Assistance explained
The support awarded by the Local Authority under the Retail, Hospitality and Leisure business rates relief scheme is likely to amount to a subsidy, therefore it can only be awarded if it complies with the UK’s domestic and international subsidy control obligations.
In summary, a subsidy is where a public authority such as a Local Authority provides support to an enterprise that gives them an economic advantage, meaning equivalent support could not have been obtained on commercial terms. The amount of subsidy that can be awarded is set out in the UK Subsidy Control legislation, specifically the Minimal Financial Assistance limit (MFA) that allows a business at economic actor level (for example a holding company and its subsidiaries) to receive up to £315,000 in subsidies over a three year rolling period (consisting of the current financial year and the two previous financial years).
Further explanation of the UK Subsidy control requirements in particular the Minimal Financial Assistance limit is available on our subsidy webpage
Please note it is the responsibility of the business, to check that it is eligible, and by the very nature of applying for or accepting a subsidy, such as Retail, Hospitality and Leisure Business Relief you are declaring that the business will not exceed the permitted subsidy allowance threshold. If you have any doubt as to your position, you must seek appropriate advice.
Find out if your business is eligible?
Your business could qualify for the award if it is in occupation of a non-domestic rated property that is wholly or mainly used as:
shops, restaurants, cafes, drinking establishments, cinemas or live music venues
for assembly and leisure, or
hotels, guest and boarding premises or self-catering accommodation
We consider shops, restaurants, cafes, drinking establishments, cinemas and live music venues to mean:
Properties that are being used for the sale of goods to visiting members of the public:
Shops (such as florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets etc)
Second-hand car lots
Properties that are being used for the provision of the following services to visiting members of the public:
Car hire
Dry cleaners
Funeral directors
Hair and beauty services (such as hairdressers, nail bars, beauty salons, tanning shops etc)
Launderettes
PC/TV/ domestic appliance repair
Photo processing
Shoe repairs/key cutting
Ticket offices for example, for theatre
Tool hire
Travel agents
Properties that are being used for the sale of food and/or drink to visiting members of the public:
Bars
Coffee shops
Pubs
Restaurants
Sandwich shops
Takeaways
Properties which are being used as cinemas
Properties that are being used as live music venues:
Live music venues are properties wholly or mainly used for the performance of live music for the purpose of entertaining an audience. Properties cannot be considered a live music venue for the purpose of business rates relief where a venue is wholly or mainly used as a nightclub or a theatre, for the purposes of the Town and Country Planning (Use Classes) Order 1987 (as amended).
Properties can be a live music venue even if used for other activities, but only if those other activities
are merely ancillary or incidental to the performance of live music (for example, the sale/supply of alcohol to audience members) or
do not affect the fact that the primary activity for the premises is the performance of live music (for example, because those other activities are insufficiently regular or frequent, such as a polling station or a fortnightly community event).
We consider assembly and leisure to mean:
Properties that are being used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities):
Casinos, gambling clubs and bingo halls
Gyms
Museums and art galleries
Nightclubs
Sports grounds and clubs
Sport and leisure facilities
Stately homes and historic houses
Theatres
Tourist attractions
Wellness centres, spas, massage parlours
Properties that are being used for the assembly of visiting members of the public:
Clubhouses, clubs and institutions
Public halls
We consider hotels, guest and boarding premises and self-catering accommodation to mean:
Properties where the non-domestic part is being used for the provision of living accommodation as a business:
Caravan parks and sites
Holiday homes
Hotels, guest and boarding houses
Exclusions
However, your business will not be considered as an eligible use by government for the purpose of this discount (or any business broadly similar in nature) if being used for the businesses listed below:
Properties that are being used for the provision of the following services to visiting members of the public:
Financial services (for example banks, building societies, cash points, bureaux de change, short-term loan providers, betting shops)
Medical services (for example vets, dentists, doctors, osteopaths, chiropractors)
Professional services (for example solicitors, accountants, insurance agents/ financial advisers, employment agencies, estate agents, letting agents)
Post office sorting offices
Or are not reasonably accessible to visiting members of the public
How the RHL relief will be applied?
The RHL relief will be assessed and calculated per chargeable day between 1 April 2023 to 31 March 2024 and 1 April 2024 to 31 March 2025.
The discount will be applied against the net bill after all mandatory reliefs and certain discretionary reliefs have been applied. Other reliefs and discounts that can be provided at the local authority’s discretion will be applied after any Retail, Hospitality and Leisure Business Rates Relief.
Where the net rate liability for the day is nil after all other mandatory reliefs, such as Small Business Rate Relief, have been applied, Retail Hospitality and Leisure Business Rates Relief will not apply. Ratepayers that occupy more than one property will be entitled to the discount for each of their eligible properties up to the maximum £110,000 cash-cap per business.
Do I need to apply for the RHL relief?
No. The relief will be automatically awarded to those businesses that we consider qualify. It will be applied to your business rates bill for the start of the year 2024/2025, unless you (the business) contact the council to refuse the relief being applied. For example, if applying the relief would breach the cash cap or subsidy threshold.
If you feel your business fits the criteria for the relief but you have not had the relief applied to your bill you can apply using the online form below. You must apply for each individual eligible property you occupy within the city of Salford.
To apply for the relief, you will need your business rates account number which can be found on your bill. If you can’t find a bill you can request a copy bill.
You will also need details of other RHL reliefs awarded (if applicable).
Please note the RHL relief can be awarded retrospectively upto 1 April 2023, provided the business meets the qualifying criteria and would not breach the cash cap or subsidy threshold.
Can I reduce or refuse the amount of relief awarded?
Yes, you should notify us immediately to request the amount that has been automatically awarded to be reduced or you wish to refuse the whole amount of the RHL relief being applied to your bill completely.
This may be due to part or all of the RHL relief award breaching the £110,000 cash cap limit and/or the Minimal Financial Assistance limit of £315,000 in subsidies over a three year rolling period (consisting of the current financial year and the two previous financial years).
You can notify us using the form below, so that we can amend or withdraw the relief.
Please note, if you refuse the RHL relief, which you can do anytime up to 30 April 2025, you are determining your business ineligible and cannot withdraw your refusal for either all or part of the financial year.