Empty Rates Relief
No business rates are payable for the first 3 months that a property is empty, extended to 6 months in the case of qualifying industrial hereditaments – (e.g. warehousing, manufacturing, storage etc). After this period rates are payable in full unless exemptions apply. No empty rates are payable for vacant properties assessed at below RV £2,900.
Charities and CASCs
Charities and community amateur sports clubs can apply for relief of up to 80% if a property is used for charitable purposes. Local councils can provide additional ‘discretionary relief’ (up to 100%).
Enterprise Zones
Businesses starting up or relocating to an enterprise zone can potentially qualify for enterprise zone business rates relief of up to 100% for 5 years, to a maximum of £275,000.
Improvement Relief
Certain improvements to a building completed after 1 April 2024 may be entitled to improvement relief. There are qualifying conditions relating to the scope of the improvements and they are only available to a ratepayer who has been in continuous occupation of their property during the duration of the works. New properties or those removed from the rating list during the work will not qualify and this relief is not available to landlords or developers.
100% relief is applied to the increase in the liability resulting from the improvements for a period of one year.
Rural Rate Relief
Businesses in a rural area with a population below 3,000 can obtain 100% business rates relief if the business is:
- the only village shop or post office with a Rateable Value of up to £8,500
- the only public house or petrol station with a Rateable Value of up to £12,500
Retail, Hospitality and Leisure Relief
Retail, hospitality and leisure relief replaced the retail discount on 1 April 2022.
You could qualify for retail, hospitality and leisure relief if your business is mainly being used as a:
- shop
- restaurant, café, bar or pub
- cinema or music venue
- hospitality or leisure business: for example, a gym, a spa or a hotel.
For the period from 1 April 2023 to 31 March 2024 relief is to be calculated at 75% – up to a total value of £110,000 per business.
The Government has extended this relief for the 2024/25 year.
Local Discounts and Hardship Relief
Local authorities have a general power to grant discretionary local discounts and some provide hardship relief if your business meets certain criteria.
Note: Many of the reliefs and discounts including the Retail, Hospitality and Leisure Relief schemes from 2022 are subject to Subsidy Control (this replaced European State Aid de minimis thresholds). Under the Minimum Financial Assistance limits a recipient may not receive relief which qualifies as Subsidy to greater than £315,000 over a rolling three-year period including the year to which the relief applies.
For more detail see Guidance on the UK’s international subsidy control commitments.
