The 100% business rates discount applied to eligible retail, hospitality and leisure properties in England was due to end on 31 March 2021, however the Government has today announced that this 100% discount will be extended by three months up to 30 June 2021. From 1 July 2021, the discount will reduce to 66% for nine months to 31 March 2022.
It is estimated that 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
The ‘Budget documentation also stated that the Government will legislate to ensure that the business rates relief repayments that have been made by certain businesses are deductible for corporation tax and income tax purposes. This will ensure that these businesses are no worse off from a tax perspective than if they had paid the business rates in the first place. This will apply for repayments made to the devolved administrations as well as to those made in relation to England.
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