Retail Discount – 2019/20 and 2020/21 – Localism Act (under section 47 of the Local Government Finance Act 1988, as amended)

Retail Discount – 2019/20 and 2020/21 – Localism Act (under section 47 of the Local Government Finance Act 1988, as amended)

Business Rates – Budget 2018

With effect from 1st April 2019 local authorities in England are empowered to provide Retail Discount to qualifying property for a period of two years

Criteria for the business rate discount

To be eligible for this discount, the retail property must:

  • be occupied
  • have a rateable value of less than £51,000
  • be wholly, or mainly, used as either:
    • shops, including Post Offices, car showrooms, car hire, opticians, petrol stations
    • restaurants and cafes, including takeaways
    • drinking establishments

When the discount will not be applied

 The property will not get a discount if it’s being used for:

  • financial services, such as banks, building societies, cash points: both individual cash points and retail units with only cash points in them, bureaux de change, payday lenders, betting shops, pawn brokers
  • other services such as estate agents, letting agents, employment agencies
  • medical services such as dentists, doctors, osteopaths, chiropractors and vets
  • professional services such as solicitors, accountants, insurance agents, financial advisers, tutors
  • Post Office sorting offices

How is it Calculated?

One third of the 2019/20 and 20120/21 bill will attract Retail Discount after mandatory reliefs and other discretionary reliefs funded have been applied, excluding those where local authorities have used their discretionary relief powers introduced by the Localism Act.

The discount will not be applied if premises are not reasonably accessible to visiting members of the public, such as trade only retailers or retailers that require customers to join clubs or other membership schemes.

State Aid:

 In order not to breach State Aid barriers, the award of aid must not result in the undertaking having received more than €200,000 of De Minimis aid in a three year period consisting of the current financial year and the two previous financial years.

The above list and guide is not exhaustive but gives overview as to how the discount will be applied.

For further information please contact Miller Property Consultants on 01277 233100, 07957 544007 or

2019-03-27T15:11:08+00:00 March 27th, 2019|

T 01277 233 100 F 01277 233 300 M 07957 544 007

Registered Office: 17 Hogarth Avenue | Brentwood | Essex | CM15 8BE
Registered in England & Wales. Company No.03786042