Business Rates – Retail Relief

Did you know that you may be eligible to claim Retail Relief on your business rates if you occupy a retail property with a rateable value of £50,000 or less?

The retail sector has changed significantly over recent years, particularly as a result of more shopping being completed over the internet. Many of our local High Streets are facing financial challenges as a result. In the Autumn Statement of 5 December 2013, the government announced a specific support for retailers: up to £1,000 relief from Business Rates to all retail properties with a rateable value of £50,000 or less for the years 2014-15 and 2015-16.

In the Autumn Statement of 3 December 2014, the level of relief was increased for the year 2015-16 to £1,500. It is important to note that this Retail Relief is in addition to the regular Small Business Rate Relief and any other reliefs you may receive (further details of Small Business Rate Relief can be found: https://www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief).

One of our clients received Retail Relief as they have a sales counter within their warehouse.

Which properties can benefit from Retail Relief?

Retail Relief is specifically for properties that are wholly or mainly being used as shops, restaurants, cafes or drinking establishments and that have a rateable value of £50,000 or less. As with some other reliefs (e.g. Charity Relief) this is a test of use rather than occupation. The specific Retail Relief Guidance Notes provide examples of businesses that are considered eligible or not and further details of, for example, situations of shared occupancy.

Business Rates Retail Relief

How much Retail Relief is available?

The maximum amount of Retail Relief available for each relevant property is £1,000 for the year 2014-15 and is £1,500 for the year 2015-16. The amount that can be claimed does not depend at all on the rateable value of the property (as long as the full rateable value is £50,000 or less).

Retail Relief is applied against your net rate bill after all other reliefs have been taken into account (such as Small Business Rate Relief – see above) so if your net bill is less than the Retail Relief, you will only receive the value of your net liability.

If you would like to discuss Retail Relief further and explore if you may be able to benefit from it, contact Mike today on 01280 818776 or info@balmeraccountancy.co.uk.

 

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