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The Government recently 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.

The aim of this scheme is to provide Business Rates Relief for the financial year 2021/22 to those who have been adversely affected by the pandemic and have been unable to adequately adapt to that impact.

Exclusions

You will not be eligible for this relief if you are

  • In receipt of Extended Retail Discount or Nursery Discount
  • Not in occupation of the business property (Unless you have been forced to close due to the Government’s advice on Covid-19)
  • Not registered for Business Rates
  • Already In receipt of full rates relief

Subsidy allowance

The CARF scheme is subject to the subsidies chapter within the UK-EU Trade and Cooperation Agreement (TCA). 

pdf Find out more about Covid-19 business subsidy allowance (595 KB)

However, for CARF there is an exemption for subsidies under the value of approximately £2,243,000 per economic actor (broadly speaking, for example, a holding company and its subsidiaries). This allowance comprises 325,000 Special Drawing Rights (at current exchange rates about £343,000) for Small Amounts of Financial Assistance and a further £1,900,000 for COVID-19 related subsidy.

To be awarded CARF you must not have claimed over the period 2019/20 to 2021/22 more than £2,243,000 from schemes that fell within the Small Amounts of Financial Assistance or COVID-19 related allowances. COVID-19 business grants you have received from local government and the 2019/20 Retail Relief should count towards this limit, but you should not count any Extended Retail Discount you have received since 1 April 2020.

Read more about CARF subsidy control on the Government's website.

Change of circumstances

If your circumstances change during the 2021/22 financial year or during a later financial year, then the discount you are given may need to be recalculated. This could include a backdated change to the rateable value of the property.

Applying for the CARF Business Rates Relief

Applications for the CARF discount must be made by 11.59pm on 21 February 2022.

Applications will not be reviewed and processed after the closing date.

We will let you know if your application has been successful.

Covid-19 Additional Relief Fund Application Form

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