Posted on 15 Mar 2019 5:15 PM

The promised one-third discount on business rates will come into force in the new tax year 2019-20.

The small business rate multiplier for 2019-20 is 0.491 and the standard business rate multiplier for 2019-20 is 0.504

The Ministry of Housing, Communities & local Government has issued a Business Rates Retail Discount Guidance PDF which can be downloaded here.

Properties with a rateable value of less than £51,000 that are wholly or mainly being used as shops, restaurants, cafes and drinking establishments will be eligible for the discount. For the these establishments to qualify for the rates relief, the definition of their business has to fit into the following criteria.

The following business properties are eligible if they are been used for the provision of the following services to visiting members of the public.

The following list of business properties is not considered by the government guidelines as ‘retail’ so do not qualify for the business rates relief. However, the local authority can determine the exact guidelines and include these businesses if they consider them to be retail.

The retail discount (one third) is always calculated after mandatory relief and other discretionary relief funded by section 31 grant. See the PDF download for more examples.

An occupied shop with a rateable value of £40,000

Gross rates £40,000 (before any reliefs) 

£40,000 x 0.491               = £19,640

Retail discount 1/3         = £6,547

Rates payable                = £13,093

An occupied shop with a rateable value of £13,500 eligible for Small Business Rate Relief (SBRR)

Gross rates £13,500 (before any reliefs) 

£13,500 x 0.491                         = £6,629

Nett rates after (SBRR) (50%)  =£3,314

Retail discount 1/3                   = £1,105

Rates payable                          = £2,210