COVID-19 Additional Relief Fund (CARF)

On 25 March the Government announced a new COVID-19 Additional Relief Fund (CARF) of £1.5 billion. The fund will be available to support those businesses affected by the pandemic but that are ineligible for existing support linked to business rates. Basingstoke and Deane’s allocation of this is £4,254,267.

Billing authorities will be responsible for designing the discretionary relief schemes that are to operate in their areas. However, in developing and implementing their schemes local authorities must, if they are funding the relief from the section 31 grant:

  • not award relief to ratepayers who for the same period of the relief either are or would have been eligible for the Extended Retail Discount (covering Retail, Hospitality and Leisure), the Nursery Discount or the Airport and Ground Operations Support Scheme (AGOSS),
  • not award relief to a hereditament for a period when it is unoccupied (other than hereditaments which have become closed temporarily due to the government’s advice on COVID-19, which should be treated as occupied for the purposes of this relief), and
  • direct their support towards ratepayers who have been adversely affected by the pandemic and have been unable to adequately adapt to that impact.

In line with the legal restrictions in section 47(8A) of the Local Government Finance Act 1988, billing authorities may not grant the discount to themselves, certain precepting authorities (e.g. a parish or county council) or a functional body, within the meaning of the Greater London Authority Act 1999.

The amount of relief awarded may need to be recalculated in the event of a change of circumstances. This could include, for example, a backdated change to the rateable value or the hereditament. This change of circumstances could arise during the year in question or during a later year.

Under regulations made under section 47 of the Local Government Finance Act 1988 authorities must give at least 12 months’ notice of a revocation or variation of a rate relief scheme the effect of which would be to increase rate bills (other than to comply with any international agreement). Such a revocation or variation can only take effect at the end of a financial year but, within these regulations, local authorities may still make decisions which are conditional upon eligibility criteria. If a change in circumstances renders a property ineligible or reduces the value of the award, the relevant bill can be amended in the year to reflect the loss of the relief.

Basingstoke and Deane will award relief for this scheme as shown below:

To apply for the relief currently the business premises must be occupied. Please complete the application below, the business must confirm their business has been adversely affected by the pandemic and adhere to the subsidy rules. The relief is limited so the application will be on a first come basis, once the £4,254,267 has been awarded, there will be no further applications accepted.

The relief awarded will be as follows:

  • For business premises with a rateable value of up to and including £50,000 - 100% relief of the net charge after other eligible reliefs have been applied.
  • For business premises with a rateable value of £50,001 up to and including £100,000 - 50% relief of the net charge after other eligible reliefs have been applied.
  • For business premises with a rateable value of £100,001 and above - 10% relief of the net charge after other eligible reliefs have been applied.

Business must have a business rates account and be occupied with a charge to receive a relief. Basingstoke and Deane will award relief for this scheme as follows:

Business’s eligible for this scheme will be the following sectors
  • Garages that didn’t get Retail or SBRR
  • Serviced Offices
  • Manufacturing
  • Distribution
  • Health and beauty services
  • Animal Boarding
  • Storage (commercial storage and self-storage)
  • Event planning & associated businesses (lighting hire, tent hire, portaloos, etc)
  • Professional services, estate agents, accountants, solicitors
  • Construction and associated businesses (Merchants, suppliers, scaffold storage etc)
  • Moving companies
  • Catering companies/catering suppliers
  • Service & Repairs (not vehicles) eg, photocopiers, washing machines, pianos. Where an entry into a home was required, or servicing office based things, air con etc
  • Personal services previously excluded from retail
  • Agricultural equipment (sales, hire, repairs)?
  • Vets, etc
  • Haulage
  • Retail storage
  • Multi-storey car parks, for which customers pay to park

This is not an exhaustive list, other sectors may still receive relief.

Businesses who are unlikely to qualify for the relief
  • No relief to ratepayers who for the same period of the relief either are or would have been eligible for the Extended Retail Discount (covering Retail, Hospitality and Leisure), or the Nursery Discount
  • If full relief is given for any other business rates relief for example, small business rates relief (SBRR), charity relief etc.
  • Relief will not be awarded to a hereditament for a period when it is unoccupied (other than hereditaments which have become closed temporarily due to the government’s advice on COVID-19, which should be treated as occupied for the purposes of this relief).
  • Reached their subsidy limit for 2021/22
  • Hereditaments that were unoccupied
  • Hereditaments for personal use
  • Individual Car parking spaces
  • Communication Stations
  • Anaerobic Digestion Plant and Premises
  • Photovoltaic Installation and Premises
  • Sewage Treatment Works and Premises
  • Utility Hereditaments
  • Banks
  • ATMS
  • Surgery and Premises
  • Land and storage facilities
  • NHS including NHS and Foundation Trusts
  • Cemetery and Premises
  • Stables and premises (not including riding schools)
  • Betting Shops
  • Schools
  • Public bodies, including Government departments, the armed forces, fire, police and local Government including Town and Parish Council’s, and County Council’s

The CARF discretionary relief will run from 1 April 2021 to 31 March 2022, it will be removed from 1 April 2022. You can apply for this back dated relief until the 1 October 2022.

Subsidy

As part of the application process for this scheme, all businesses will be required to self-certify that they meet the Subsidy criteria shown below.

The EU State aid rules no longer apply to subsidies granted in the UK following the end of the transition period, which ended on 31 December 2020. This does not impact the limited circumstances in which State aid rules still apply under the

Withdrawal Agreement, specifically Article 10 of the Northern Ireland Protocol.

However, in the vast majority of cases this will not apply. The United Kingdom remains bound by its international commitments, including subsidy obligations set out in the Trade and Cooperation Agreement (TCA) with the EU. BEIS Guidance for public authorities explaining the subsidies chapter of the TCA, World Trade

Organisation rules on subsidies, and other international commitments - GOV.UK

The below scheme rules should be applied to applicants at the level of economic actor, which is defined as an entity or a group of entities constituting a single economic entity regardless of its legal status, that is engaged in an economic activity by offering goods or services on a market.

There are three subsidy allowances for the COVID-19 Business Grant Schemes set out below: Small Amounts of Financial Assistance Allowance, the COVID-19

Business Grant Allowance and the COVID-19 Business Grant Special Allowance.

The Government have concluded that the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance are compatible with the principles set out in Article 366 of the TCA and are targeted, proportionate, and effective in order to remedy difficulties caused by the COVID-19 pandemic for the purposes of Article 364(3). These two allowances constitute subsidy schemes for the purposes of Article 373(4) of the TCA and the transparency requirements at Article 369 of the TCA.

There are three subsidy allowances for this scheme set out below:

  • Small amounts of financial assistance allowance. Grants may be paid in accordance with Article 364(4) of the TCA, which enables an applicant to receive up to a maximum level of subsidy without engaging chapter 3 of the TCA. This allowance is up to 325,000 Special Drawing Rights, to a single economic actor over a rolling period of three fiscal years, (the “Relevant Period”), which is the equivalent of £335,000 as at 2 March 2021. Access the special drawing right calculator https://coinmill.com/SDR_calculator.html. When calculating the amount of subsidy an applicant has received under Article 364(4) of the TCA in a Relevant Period, the applicant should have regard to any subsidy given under Article 364(4) and any subsidy given under Commission Regulation (EU) No 1407/2013 (the De Minimis Regulation). An applicant may elect not to receive grants under the Small Amounts of Financial Assistance Allowance and instead receive grants only using the below allowances available.
  • COVID-19 Business Grant Allowance. Where the Small Amounts of Financial Assistance Allowance has been reached or an applicant has elected not to receive a grant under this allowance, grants may be paid in compliance with the Principles set out in Article 366 of the TCA and in compliance with Article 364(3) of the TCA under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of the COVID-19 Business Grant Schemes, this allowance is £1,900,000 per single economic actor. This allowance includes any grants previously received under otherCOVID-19 Business Grant Schemes using the COVID-19 Business Grant Allowance and any State aid previously received under Section 3.1 of the European Commission’s Temporary Framework across any other UK scheme. This may be combined with the Small Amounts of Financial Assistance Allowance to equal £2,235,000 (subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator, and any other support an applicant has received under the Small Amounts of Financial Assistance Allowance in the Relevant Period).
  • COVID-19 Business Grant Special Allowance. Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under the COVID-19 Business Grant Schemes of up to £10,000,000 per single economic actor, provided certain conditions are met.

Appeals

These can be made by email or in writing, stating what the appeal is regarding and reason for the appeal to the Revenues Operations Manager.

Appeals can be made for discretionary relief to the Revenues Operations Manager at rates@basingstoke.gov.uk.

Appeals can also be made by Judicial Review through the High Court or Local Government Ombudsman.

CARF2021/22 Relief Form

Contact us

  • Contact us online
  • 01256 844844
  • Civic Offices
    London Road
    Basingstoke
    RG21 4AH
  • Opening hours
    Monday to Friday
    8.30am to 4.30pm