Expanded Retail Discount 2021 to 2022

At the Budget on Wednesday 3 March 2021 the Chancellor announced that the government would provide, as a temporary measure for 2021 to 2022, additional business rates support for eligible retail, hospitality and leisure businesses in England occupying a qualifying property. This is an extension of the discount scheme implemented in 2020/2021 with some amendments to the previous scheme.

Summary of the scheme

• The Expanded Retail Discount awarded in 2020 to 2021 will be extended for three months for eligible properties, at 100% relief, uncapped, for the period 1 April 2021 to 30 June 2021.
• from 1 July 2021 to 31 March 2022, the expanded retail discount would apply at 66% relief for eligible properties in the scheme, subject to the cash cap (see below).
• Ratepayers that occupy more than one property will be entitled to relief for each of their eligible properties subject to the cash caps.

Cash Cap explained

The cash cap is the discount limit a ratepayer can receive across all their premises the business occupies that are eligible for relief in England.

• The cap only applies to the 66% discount for the period 1 July 2021 to March 2022.
• The cap is set at £2 million worth of discount for business ratepayers required to close by law from 5 January 2021. 
• For business ratepayers allowed to open from 5 January 2021 the cap is set at £105,000.
• No business ratepayer in any circumstances can receive more than £2 million.
• Where a ratepayer eligible for the closed business cash cap also occupies premises that were able to open and the value of the discount on the closed premises is less than £2 million then they may also claim the discount on the open premises, but only up to the cap of £105,000

Read the government issued guidance on the operation of the scheme.

Ratepayers, on a self-assessment basis, need to inform the council if by receiving the discount they would breach the cash caps and therefore wish to opt out of the discount being applied. This can be done by using the online refusal form below.

Do I need to apply for the discount?

The discount will be automatically awarded to businesses deemed to qualify, based on those currently in receipt of the discount applied in 2020/2021 unless the business contacts the council to refuse the discount being applied. For example, if applying the discount would breach the cash cap.

If you feel your business fits the criteria for the discount and have not had the discount applied to your bill you can apply using the online form below.

Apply now

Can the discount be refused?

Businesses may choose to opt out of support by notifying us that they wish to refuse the discount in relation to the premises the bill refers to. This may be because the cash cap has been exceeded on receipt of the discount on other properties occupied by the business.

You can let us know if this is the case by using the online form below.

Please be aware that once you have refused the discount, you cannot withdraw your refusal for all or any part of the discount period.

Refuse the expanded retail discount 2021 to 2022

Billing in 2021/2022

You will receive your first business rates bill for 2021 to 2022 during April 2021. This first bill will show the 100% discount which only applies for the first three months of the financial year from 1 April 2021 to 30 June 2021.

A revised bill will be issued in June 2021 with the discount reduced to 66% in line with government guidance and subject to cash cap. The 100% discount on will end on 30 June 2021. The revised bill will show the business rates payable for the period 1 July 2021 to 31 March 2022.

You must declare all Expanded Retail Discount(s) received  

If you (or if appropriate a company in your Group) have received Expanded Retail Discount on any other property and have not exceeded the cash cap limits then you should complete the online declaration form below by including all other Expanded Retail Discount you are in receipt of for premises other than the one to which your bill and letter relates to confirm that the award of Expanded Retail Discount does not exceed the cash cap for 2021 to 2022.

Declaring Expanded Retail Discount received 2021 to 2022 to demonstrate compliance with the Cash Cap limit

How to pay

Details on paying this second bill are available on our How to Pay page.

If you wish to pay by Direct Debit you must set up a new mandate, even if you have previously paid via this option. We cannot continue your previous instruction if more than 13 months have passed since the last payment was made. This would be the case for all businesses receiving the retail discount during 2020 /2021.

This instruction can easily be arranged before your second bill is issued in June 2021.

Eligibility

To be eligible for this discount, the retail premises as per government guidance must:

• be occupied
• be wholly or mainly used as shops, restaurants, cafes, drinking establishments, cinema, live music venues, hotels, guest and boarding premises, self-catering accommodation, sport and leisure facilities, tourist attractions, community halls and clubhouses used for assembly and leisure by visiting members of the public.

Get more details of properties which will benefit from the expanded retail discount.

Premises being used for the following will not be eligible for the discount:

• financial services (for example banks, building societies, cash points, bureaux de change, short-term loan providers) 
• medical services (for example vets, dentists, doctors, osteopaths, chiropractors) 
• professional services (for example solicitors, accountants, insurance agents/ financial advisers) 
• post office sorting offices 
• properties that are not reasonably accessible to visiting members of the public

This page was last updated on 24 June 2021