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News – 19.12.24

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VAT on Private School fees training

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Expanded Retail Discount Scheme now includes certain hereditaments operated by charities

Expanded Retail Discount scheme -100% business rates relief to charity shops, cafes, museums, galleries, theatres, certain public venues, attractions

One of the financial measures announced in response to COVID-19 is the launch of the government’s Expanded Retail Discount Scheme.

Regardless of their rateable value, certain organisations will obtain 100% business rates reliefs (England only at present) in 2020/21, regardless of their rateable value. You can view the official government guidance on this here.

This will include certain hereditaments operated by charities, including charity shops, museums, galleries, theatres, coffee shops/cafes, community halls, sport & leisure facilities, live venues, tourist attractions, clubs/clubhouses and institutions used for the assembly of visiting members of the public. This discount is applied after the mandatory charity business rates relief.

Following discussions with the European Commission, the government has advised local authorities that the Expanded Retail Discount Scheme is not a state aid and the relief should be applied to all eligible properties.

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

Gross rates (before any reliefs) = £13,500 x 0.499	= £6,737
Net rates after SBRR (50%)	= £3,368
Expanded Retail Discount (100%)	= -£3,368
Rates due (after SBRR and Expanded Retail Discount):	= £nil

This article was last updated on 27 March 2020.

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If you would like advice on how your charity or not-for-profit could benefit from this scheme or would like to discuss how we can help you manage the impact of Covid-19, please fill out the form below to speak to a member of our expert charity team.

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