Help available for business rates

Hardship Rate Relief

Guide

What is Hardship Rate Relief?

Hardship Rate Relief for a non-domestic property is intended to help a business recover from a temporary crisis, financial or otherwise, as a result of exceptional circumstances. Therefore, some form of recovery plan will generally be required before an application can be considered.

What is meant by a 'crisis' and 'exceptional circumstances'?

As the Hardship Rate Relief scheme covers unforeseen events, it is not possible for Land & Property Services (LPS) to offer precise definitions. However, a 'crisis' would have to result in a serious loss of trade or have a major effect on the services that can be provided.

'Exceptional circumstances' will usually be circumstances that came from outside the business or organisation, are beyond the normal risks faced by businesses, and cannot be foreseen or avoided. The effect of strikes within a business or organisation, increased running costs, and increased competition would not be considered as 'exceptional circumstances' as they are normal business risks.

As a general rule, circumstances that would be covered by a commercial insurance policy or by compensation from public funding would not be considered as 'exceptional circumstances'. However, each case will be considered individually.

What type of property does Hardship Rate Relief apply to?

Most non-domestic properties, including those owned or used by voluntary organisations, will be eligible for Hardship Rate Relief if they meet certain conditions. However, properties such as car parks, advertising hoardings, telecommunications masts and towers, and cash machines (ATMs) will not be eligible.

How to apply

If you believe your business meets the criteria for Hardship Rate Relief, you can apply by downloading the Hardship Rate Relief application and guidance notes (PDF, 182K). If you need help to complete the application, contact LPS.

Do I still need to continue to pay my rates?

You must continue to pay your rates while LPS considers your application. This will help you to avoid paying a large amount in one go if your application is unsuccessful. If your application is successful, LPS will refund any overpayments.

What can I expect if my application is successful?

The amount awarded is up to a maximum of 100% of rates owed for the period of hardship against the rating year the application is received. However, the maximum amount may be reduced if you have received any De Minimis state aid over the past three years.

De Minimis state aid is granted to a business by a public body, a publicly funded body, or a body under public sector control. Hardship Relief is intended to be temporary and should apply only for the length of time that it takes a business or organisation to recover from exceptional circumstances.

Hardship Rate Relief is assessed based on the rating year in which the application is made. Any award on that application will not extend beyond that rating year. If you believe the hardship still exists in the next rating year, you must make a new application.

What if I disagree with the decision?

You can ask LPS to review your case within one month of receiving the decision letter. You must explain why you think the decision is wrong. An LPS officer, different from the one who made the original decision, will review your case.