Expanded Retail Discount

From 1 April 2021 to 30 June 2021, eligible properties will be entitled to 100% discount. 

From 1 July 2021 to 31 March 2022, an extended Retail Discount of 66% will apply to eligible properties, with a cash cap of £2 million for businesses that were required to close (due to the government’s response to coronavirus) as at 5 January 2021, and £105,000 for businesses which were open on that date. 

Eligibility Descriptions

Eligible businesses will include those which are wholly or mainly used:

  • as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
  • for assembly and leisure or
  • as hotels, guest and boarding premises and self-catering accommodation.

Premises that are being used for the sale of goods to visiting members of the public such as:

  • shops (such as: florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets, etc)
  • charity shops
  • opticians
  • post offices
  • furnishing shops/ display rooms (such as: carpet shops, double glazing, garage doors)
  • car/caravan show rooms
  • second-hand car lots
  • markets.

Premises that are being used for the provision of the following services to visiting members of the public include:

  • hair and beauty services (such as: hairdressers, nail bars, beauty salons, tanning shops, etc)
  • shoe repairs/key cutting
  • travel agents
  • ticket offices e.g. for theatre
  • dry cleaners
  • launderettes
  • PC/TV/domestic appliance repair
  • funeral directors
  • photo processing
  • tool hire
  • car hire
  • employment agencies
  • estate agents and letting agents
  • betting shops,

Premises that are being used for the sale of food and/or drink to visiting members of the public include:

  • restaurants
  • takeaways
  • sandwich shops
  • coffee shops
  • pubs
  • bars.

Premises that are being used as live music venues that are:

  • wholly or mainly used for the performance of live music for the purpose of entertaining an audience
  • businesses cannot be considered a live music venue for the purpose of business rates relief where a venue is wholly or mainly used as a nightclub or a theatre.

Premises that are being used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities) including:

  • sports grounds and clubs
  • museums and art galleries
  • nightclubs
  • sport and leisure facilities
  • stately homes and historic houses
  • theatres
  • tourist attractions
  • gyms
  • wellness centres, spas, massage parlours
  • casinos, gambling clubs and bingo halls.

Premises that are being used for the assembly of visiting members of the public include:

  • public halls
  • clubhouses, clubs and institutions

Where part is being used for the provision of living accommodation as a business:

  • hotels, guest and boarding houses
  • holiday homes
  • caravan parks and sites.

To qualify for the discount the hereditament should be wholly or mainly being used for the above qualifying purposes.

The list below sets out the types of businesses that the government does not consider to be an eligible use for the purpose of this discount.

  • Financial services (e.g. banks, building societies, cash points, bureaux de change, short-term loan providers).
  • Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors).
  • Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers).
  • Post office sorting offices.

The lists set out above are not intended to be exhaustive as it would be impossible to list the many and varied uses that exist within the qualifying purposes. There will also be mixed uses. Telford & Wrekin Council will determine for themselves whether particular properties not listed are broadly similar in nature to those above and, if so, to consider them eligible for the relief. Conversley, properties that are not broadly similar in nature to those listed above should not be eligible for the relief.

Nursery Discount 

From 1 April 2021 to 30 June 2021, eligible properties will be entitled to 100% relief. From 1 July 2021 to 31 March 2022, a discount of 66% will apply to eligible properties, with a cash cap of £105,000.

The Cash Caps

No cash caps will apply for the period between 1 April 2021 to 30 June 2021.

Under the cash caps, a ratepayer may only receive up to the following cash caps of Expanded Retail Discount in 2021/22 ignoring any relief for the period before 1 July 2021:

  • £2 million for ratepayers meeting the eligibility for the closed cash cap, or
  • £105,000 for all other ratepayers.

No ratepayer can in any circumstances exceed the £2 million cash cap across all of their business properties in England. Where a ratepayer eligible for the closed cash cap also occupies hereditaments which do not meet the criteria for the closed cash cap and the value of the discount on the closed hereditaments is less than £2 million then they may also claim the discount on other eligible hereditaments but only up to the cap of £105,000 in respect of those other eligible hereditaments.

Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash caps. A ratepayer shall be treated as having a qualifying connection with another:

  • where both ratepayers are companies, and
    • one is a subsidiary of the other, or
    • both are subsidiaries of the same company; or
  • where only one ratepayer is a company, the other ratepayer (the “second ratepayer”) has such an interest in that company as would, if the second ratepayer were a company, result in its being the holding company of the other.

Eligibility for the Closed Cash Cap (£2 million)

Business premises that due to COVID government restrictions announced on the 5 January 2021, were mandated to close by the government.

If a business would have been required to close its main, in-person service but could have adapted its business to operate takeaway, click and collect or online with delivery services, it will be considered closed and be eligible for the closed cash cap because its substantive business would have been mandated to close.

The following hereditaments do not meet eligibility for the closed cash cap:

  • premises occupied by businesses that would have been able to conduct their main service because they do not depend on providing direct in-person services from premises and can operate their services effectively remotely (e.g. accountants, solicitors)
  • premises whose occupiers may have chosen to close but not been required to by law.

Visit the GOV.UK website for a full list of qualifying businesses and criteria

How to apply

From the 1 April 2021 until the 30 June 2021, Retail Discount has been automatically applied to your account, however if you believe you qualify and it doesn’t show on your business rates bill, please contact us by submitting an email to our Business Rates team.

From the 1 July 2021 when Retail or Nursery Discount reduces to 66% businesses will be required to apply.

The Council will consider each award based on individual merits and reserves the right to decline or withdraw an award. In a similar way to other reliefs, this is a test on property use rather than occupation. It is for Telford and Wrekin to determine whether particular properties are broadly similar in nature to those list above and, if so, to consider their eligibility for the discount under our own local scheme.

You will be required to confirm that you have read and understood the Retail Discount Cap Limits and comply with the limits.

Complete our online form to apply for Retail Discount

How to opt out of Retail Discount

You may opt out of receiving the discount in 2021/22 by notifying us that you wish to refuse to receive the discount in relation to the premises your bill refers to. Please be aware that once you have refused the discount, you cannot withdraw your refusal for all or any part of the discount period. To notify us you wish to refuse the discount in 2021/22, please complete the Retail Discount Application form selecting Cancel when prompted.

The Chancellor of the Exchequer announced in March 2020 increased measures for Businesses in response to coronavirus (COVID-19).

Occupied Shops, pubs, theatres, music venues, restaurants - and any other business in the retail, hospitality or leisure sector - will pay no business rates for 12 months effective from the 1 April 2020 regardless of size.

Ratepayers that will benefit from the Retail Discount will be occupied properties that are wholly or mainly being used for the sale of goods to visiting members of the public such as:

  • shops, restaurants, cafes, drinking establishments, cinemas and live music venues
  • for assembly and leisure (such as a community centre or gym)
  • hotels, guest and boarding premises and self-catering accommodation.

Ratepayers that occupy more than one property will be entitled to Retail Discount for each of their eligible properties.

Your property will not get a discount if it's being used for the following: 

  • financial services, such as banks, building societies, bureau de change, payday lenders, betting shops, pawn brokers, cash points
  • professional services such as estate agents, letting agents, employment agencies, solicitors, accountants, insurance agents/ financial advisers, tutors
  • medical services such as dentists, doctors, osteopaths, chiropractors and vets
  • post office sorting offices.

Visit the GOV.UK website for the full list of qualifying businesses and criteria

Prior to April 2020, a Retail Discount of one third of the bill after other reliefs have been applied was available for properties which were:

  • occupied
  • had a rateable value of less than £51,000
  • used by visiting members of the public and
  • wholly or mainly being used as a shop, which includes post offices, car showrooms, car hire, opticians, petrol stations, launderettes, hair and beauty services, a restaurant or cafe, including takeaways and drinking establishments.

Your property will not get a discount if it's being used for the following: 

  • financial services, such as banks, building societies, bureau de change, payday lenders, betting shops, pawn brokers and cash points
  • professional services such as estate agents, letting agents, employment agencies, solicitors, accountants, insurance agents/ financial advisers and tutors
  • medical services such as dentists, doctors, osteopaths, chiropractors and vets
  • post office sorting offices.

Last updated: 20/05/2021 12:47

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