What is Retail, Hospitality & Leisure Relief?
The Retail, Hospitality and Leisure (RHL) relief scheme is a government support measure that reduces business rates bills for eligible properties in England. It was introduced to help the sectors most affected by the shift to online shopping and the impact of economic pressures.
For 2025/26, the relief stands at 40% of your rates bill, capped at £110,000 per ratepayer. This is a significant reduction from the 75% relief available in 2024/25, and businesses should plan accordingly.
RHL Relief Rates — Year by Year
| Year |
Relief Rate |
Cap per Ratepayer |
| 2024/25 | 75% | £110,000 |
| 2025/26 | 40% | £110,000 |
Eligible Property Types
- Shops, stores, and retail outlets
- Restaurants, cafes, takeaways, and sandwich bars
- Pubs, wine bars, and bars
- Hotels, bed & breakfasts, and guest houses
- Cinemas and live music venues
- Assembly and leisure properties (gyms, spas, bowling alleys)
- Theatres and museums
How RHL Relief Interacts with SBRR
If your property also qualifies for Small Business Rate Relief, the SBRR is applied first. For properties where SBRR eliminates the bill entirely, RHL relief is irrelevant. For properties where SBRR provides only partial relief (RV £12,001–£15,000), the RHL relief of 40% can be applied to the remaining bill, potentially reducing it to a very low amount.
The £110,000 Cap Explained
The annual cap applies per ratepayer, not per property. If you own a chain of shops, the total RHL relief across all eligible properties cannot exceed £110,000. Once the cap is reached, you pay full rates on any additional eligible properties.
For a property with a rateable value of £275,000, the full rates bill would be approximately £150,150 (at 54.6p). The 40% RHL relief would be £60,060 — well within the cap. A business with 5 such properties would hit the cap before the third property is fully covered.
Frequently Asked Questions
What is Retail, Hospitality and Leisure (RHL) relief?▼
RHL relief is a government support scheme that reduces business rates bills for eligible retail, hospitality and leisure properties in England. For 2025/26, it provides 40% relief, capped at £110,000 per ratepayer across all properties.
Which property types are eligible for RHL relief?▼
Eligible properties include shops, restaurants, cafes, bars, pubs, hotels, B&Bs, cinemas, theatres, gyms, leisure centres, and similar premises. The property must be used for the qualifying purpose — offices, factories and storage units do not qualify.
What is the £110,000 cap?▼
The RHL relief is capped at £110,000 per ratepayer for the whole financial year, across all their properties. If you have multiple eligible properties, your total relief across all of them cannot exceed £110,000.
How do I claim RHL relief?▼
RHL relief should be automatically applied by your local council. However, if it has not been applied, or if your property use has changed, contact your local council's business rates team to request the relief.
Can I combine RHL relief with SBRR?▼
Yes. If you qualify for SBRR (which may reduce your bill to zero for low-value properties), RHL relief may be redundant. For properties where SBRR gives partial relief, RHL can be applied to the remaining bill. The combined relief cannot reduce your bill below zero.
What was the RHL relief rate for 2024/25?▼
For 2024/25, the RHL relief was 75%, capped at £110,000 per ratepayer. For 2025/26, the government reduced this to 40%. This is a significant reduction that will increase bills for many hospitality and retail businesses.
Is there an equivalent scheme in Wales?▼
Wales has its own business rates relief schemes administered by the Welsh Government. The rates and eligibility criteria differ from England. Contact your local Welsh council or check the Welsh Government website for current relief rates.
Does my property need to be actively trading?▼
Yes. The property must be occupied and used for the qualifying retail, hospitality or leisure purpose. Empty properties or those used for a different purpose are not eligible for RHL relief.
What happens if I move into new premises mid-year?▼
If you occupy an eligible property during the year, RHL relief should apply from the date you take occupation. Your council will calculate the relief on a daily basis. Ensure you notify your council of any changes.
What is the difference between RHL relief and SBRR?▼
SBRR is based on your property's rateable value and is available to any small business. RHL relief is based on property use — only retail, hospitality and leisure properties qualify, regardless of size. Both reliefs can apply simultaneously.
Can I appeal if my property is excluded from RHL relief?▼
If you believe your property should qualify but has been excluded, write to your local council explaining how the property is used. If the council disagrees, you can appeal through the Valuation Tribunal.
How many properties can I claim RHL relief on?▼
You can claim RHL relief on multiple eligible properties, but the total relief across all properties is capped at £110,000 per ratepayer per year. Once you reach the cap, further properties receive no additional relief.