COVID-19 Additional Relief

On 25 March 2021 the government announced a new COVID-19 Additional Relief Fund (CARF) of £1.5 billion to support businesses affected by the pandemic who aren’t eligible for existing support linked to business rates. Local authorities were allocated a set amount of funding and permitted to design a bespoke discretionary scheme to award the relief to reduce the Business Rates liability in respect of 2021/2022. This funding must be allocated no later than Friday 30 September 2022.

This scheme has now closed for applications

A third and final COVID-19 Additional Relief scheme closed for applications on Friday 23 September 2022. We are working through the remaining applications and will be making the final awards no later than Friday 30 September 2022.

The third and final scheme included the eligible businesses listed here, with no rateable value cap restriction.

Eligibility

To be eligible for Salford's COVID-19 Additional Relief scheme three, the business must be occupying a hereditament Salford and:

  • Be registered on the Valuation Office Agency (VOA) ratings list at that address in Salford as of 1 April 2021
  • In one of the eligible business categories
  • Have been affected by the pandemic but aren’t eligible for existing support linked to business rates
  • Not have exceeded current subsidy allowance limits and can supply supporting evidence if required

Exclusions

The following are not eligible for this additional business rates relief.

Ratepayers who for the same period of the relief either are or would have been eligible for the:

  • Extended Retail Discount (covering Retail, Hospitality and Leisure),
  • Nursery Discount or
  • Airport and Ground Operations Support Scheme (AGOSS).

Essentially, this means that shops, restaurants, cafes, drinking establishments, cinemas, live music and leisure venues, hotels, guests and boarding premises and self-catering accommodation are excluded from this relief.

A property for a period when it is unoccupied (other than property which has become closed temporarily due to the government’s advice on COVID-19, which should be treated as occupied for the purposes of this relief)

A business which is categorised as one of the following types:

  • Premises and land used for personal use or storage
  • Utilities and Communications Infrastructure
  • Central and Local Government and NHS infrastructure
  • Schools and educational establishments who receive central or local government support

Where it is the council’s view that the award of any relief is not in the best interest of the taxpayers of Salford. That is businesses which are having a detrimental impact on the city, our residents, or our neighbourhoods, such as where the council is taking enforcement action against a business for a serious offence.

Further details of businesses that may or may not be eligible.

Value of the relief

In line with similar discretionary relief schemes, businesses being awarded COVID-19 Additional Relief will receive:

  • 100% relief on their business rates liability for the period 1 April 2021 to 30 June 2021
  • 50% relief on their business rates liability for the period 1 July 2021 to 31 March 2022

How will the relief be awarded?

The relief will be applied directly to the ratepayers account after mandatory reliefs and other discretionary reliefs grants have been applied.

Where this means the account will be in credit for 2021/2022, a refund will be made to the registered liable rates payer. The instalments due for 2022/2023 will remain the same.

UK Subsidy Allowance

Discretionary relief such as COVID-19 Additional relief is likely to amount to a subsidy. It is the responsibility of the business at ‘economic actor’ level to understand that by accepting this relief it will not breach the current UK Subsidy Allowance thresholds and be able to declare the total amount of subsidies received in the last three financial years.

In summary, to be awarded the relief, a business must not have claimed more than £2,243,000 from schemes which fell within the Small Amounts of Financial Assistance or COVID-19 related allowances over the period 2019/20 to 2021/22.

COVID-19 related business grants received from local government and the 2019/20 Retail Relief counts towards this limit, but any Extended Retail Discount you have received since 1 April 2020 does not count.

We will still consider applications if you have reached this subsidy limit up to a potential further £10 million subject to meeting additional eligibility criteria.

Further information on the subsidy allowances applicable to COVID-19 Additional Relief.

How to refuse or reduce the amount of relief awarded

If after successfully applying for the relief it becomes evident that by accepting the relief your business will exceed the permitted subsidy allowance, you need to notify us immediately. You can do that by using the link below. You can also use this link if you wish to refuse the relief for any other reason too.

COVID-19 Additional Relief Refusal or Reduction notification form

Preventing fraud

The government and Salford City Council will not tolerate any business falsifying their records or providing false evidence to gain this discount, including claiming support above these thresholds. A ratepayer who falsely applies for any relief, provides false information or makes false representation in order to gain relief may be guilty of fraud under the Fraud Act 2006.

This page was last updated on 24 September 2022

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