COVID – 19 Rates Relief

NORTHERN IRELAND

The Finance Minister announced on 19 May an additional package of support measures, including:

• 100% rates relief for Hospitality, Tourism, Leisure and Retail properties (with the exception of retail food stores over 300m² and off-licences) to 31 March 2021.
• 100% rates relief for Belfast International, Belfast City and City of Derry airports until 31 March 2021
• 100% rates relief for Childcare Establishments until 31 March 2021
• All other businesses, excluding public sector and utilities, to receive an extended 4-month rates holiday (April, May, June & July). This is an increase from the 3-month period previously announced and will result in a 33.3% reduction in liability.

Previously announced measures include:

• Rates bills to be deferred from April to June
• Small Business Rates Relief scheme continued into 2020/2021
• Cash grant schemes:
  • £10,000 for small businesses eligible for Small Business Rates Relief (i.e. excluding companies with 4 or more properties) with a 2015 or 2020 NAV of up to £15,000. The grant scheme now includes industrial properties with a NAV up to £15,000. The cash grant should have been received by now
  • £25,000 for businesses in retail, hospitality, tourism & leisure with a 2015 or 2020 NAV between £15,001 and £51,000.  Registration to apply is open from 20 April 2020 (closing date 20 May 2020).  This is a one-off grant i.e. one per business.  NI retailers lobbying to bring this grant scheme into line with GB, i.e. one grant per property. Further details in link below
• Hardship Rates Relief scheme due to temporary crisis as a result of exceptional circumstance:
  • Need to prove serious loss of trade and provide accounts and recovery plan
  • Only applicable on rates due, therefore February, March and August onwards

Useful links:

REPUBLIC OF IRELAND

• Local authorities have agreed to defer rates payments due from the most immediately impacted businesses – primarily in the retail, hospitality, leisure, and childcare sectors – for 3 months until end-May. This is a rates deferral and not a reduction in liability.
• The government announced on 2 May that commercial rates are being waived for a 3-month period beginning on 27 March for businesses that have been forced to close due to public health requirements.
• Applications for the Restart Fund for micro and small businesses are due to be published on 22 May.  The fund is intended to operate through a system of rebates/waivers of commercial rates payments from 2019. It is expected to cover businesses with less than 50 employees and a turnover of less than €5m who can prove a 25% downturn in turnover. Businesses can apply for a grant equivalent to no more than their 2019 rates bill of between €2,000 to €10,000.

Useful links:

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IN THE MEANTIME, PLEASE SPEAK TO YOUR USUAL CONTACT AT RHM COMMERCIAL (OR TOM MACLYNN ON 028 9043 4300) IF YOU HAVE ANY QUERIES