What amount of relief is available?
The Government has announced for 2020/21 a pub discount which will provide a £1,000 discount to eligible pubs with a rateable value of less than £100,000.
There is no relief available under this scheme for properties with a rateable value of £100,000 or more. Eligibility for the relief and the relief itself will be assessed and calculated on a daily basis.
Ratepayers that occupy more than one property will be entitled to relief for each of their eligible properties, subject to State Aid De Minimis limits.
Who is eligible?
Where pubs are part of a chain, relief will be available for each eligible property in the chain, subject to meeting State Aid requirements.
There is no definitive description of a traditional pub or public house in law, however the Government’s policy intention is that eligible pubs should:
- be open to the general public;
- allow free entry other than when occasional entertainment is provided;
- allow drinking without requiring food to be consumed; and
- permit drinks to be purchased at a bar.
For these purposes, the relief excludes; restaurants, cafes, nightclubs, hotels, snack bars, guesthouses, boarding houses, sporting venues, music venues, festival sites, theatres, museums, exhibition halls, cinemas, concert halls and casinos.
Applying for relief
We will automatically grant business rates relief for pubs as and when we are aware of businesses which may qualify for the relief. If you have not been awarded the discount and feel that you qualify, please complete an application form.
State Aid law is the means by which the European Union regulates state funded support to businesses. Providing discretionary relief to ratepayers is likely to amount to State Aid. However the relief will be State Aid compliant where it is awarded in accordance with the De Minimis Regulations.
The De Minimis Regulations allow an undertaking to receive up to €200,000 ‘de minimis’ aid over a rolling three year period. If the ratepayer is receiving, or has received any ‘de minimis’ aid granted during the current or two previous financial years (from any source), they should inform us when making the application or following receipt of the relief where no application is made.
Detailed State Aid guidance can also be found on the GOV.UK website.