The Chancellor announced an extension to the business rates retail relief, which many businesses received in 2020/21. This will continue until 30 June 2021.
From 1 July 2021 until 31 March 2022, the relief will reduce from 100% to 66%. However, the amount of benefit that a single business can receive across all its properties will be capped. Businesses that had to closed on 5 January 2021 will be capped at £2m. Businesses that could open on 5 January 2021 will be capped at £105,000.
We will be sending out our business rates bills on or around 19 March 2021. Where businesses have received retail relief in 2020/21, the bill will show retail relief granted for the whole year. This is to ensure that businesses receiving retail relief will have nothing to pay in April, May and June. We will ask all other businesses to pay their first instalment on 15 April 2021, then instalments are due on the first of the month.
We will be writing to businesses that have received retail relief during April, asking if they are likely to exceed their cap. We will then either reduce retail relief to 66% or remove it altogether from 1 July 2021, depending on the answer.