Business Rates, the Budget March 2021 & COVID_19

Expanded Retail Discount (ERD):

The Government has carried forward the ERD into rate year 2021/22 with

• 100% relief from 1^st April 2021 to 30^th June 2021

• 66% relief from 1^st July 2021 to 31^st March 2022

•  There is a cash cap on the EDR as follows

• 1^st April 2021 to 30^th June 2021 – NONE

• 1^st July 2021 to 31^st March 2022 – “Relief will be capped at £105,000 per business (cash cap), or £2 million per business (closed cash cap) where the business is in occupation of a property that was required, or would have been required, to close, based on the law and guidance applicable on 5^th January 2021”.

Who will qualify for ERD

• Occupied property that is open to the visiting members of the public and wholly or mainly used for

• Shop, restaurant, café, drinking establishments, car showrooms, live music venues and cinemas
  • Assembly or leisure

• Hotels, guest and boarding premises and self-catering accommodation

• Caravan parks and sites

• Estate Agents

• The List above is not exhaustive as is the list set out in the guide document referenced below.

• The guide list of qualifying uses is provided on “Business Rates: Expanded Retail Discount 2021 to 2022 – Local Authority Guidance through the Government Website.

Calculation of ERD:

• ERD is applied to the rate demand calculation after all other reliefs have been applied

mpc.businessratesbudget2021website0321                                                                                                   9^th March 2021