Business rates holiday extended for 12 months in Wales for retail, leisure and hospitality sectors – Land Transaction Tax reduction also extended

The rates holiday for the retail, leisure and hospitality sectors in Wales will be extended for a further 12 months, the Finance Minister Rebecca Evans has announced this afternoon.

The £380m package provides retail, leisure and hospitality businesses with rateable values up to £500k, and charities in Wales with what has been described as a “straightforward year-long rates holiday – going beyond what has been announced in England providing a much-needed boost for small and medium sized businesses struggling to cope with the impacts of the pandemic”.

This relief package, in combination with the Welsh Government existing Small Business Rates Relief scheme, should mean that more than 70,000 businesses will continue to pay no rates at all in 2021-22.

The Minister has also committed to providing businesses and charities in the leisure and hospitality sectors with a rateable value of over £500k with 100% rates relief for 2021-22 too.

Finance Minister Rebecca Evans said: “The Welsh Government has worked tirelessly to ensure businesses in Wales have access to the most generous business support package anywhere in the UK.

“Our targeted, responsible approach has allowed us to dedicate more funding for business support than we have received from the UK government. I am pleased to confirm that our 100% rates relief package for those hardest hit sectors will continue for a further 12 months, protecting jobs and businesses across Wales.”

Finance Minister Rebecca Evans has also confirmed today that the Land Transaction Tax temporary reduction period will be extended by a further 3 months so that it will end on 30 June 2021.

In England the business rates holiday in England has been extended by an additional three months meaning 750,000 retail, hospitality and leisure properties in England will pay no business rates for three months from 1 April when combined with Small Business Rates Relief, with further relief available for the rest of the year – with 75% discount after that.

Also in England there is a Stamp duty holiday on house purchases in England extended to 30 June and an extension to the temporary cut in Stamp Duty Land Tax to September.

Further details on how the budget will affect Wales are still emerging, as the Red Book detail is digested.