Business rates relief schemes

Several relief schemes can significantly reduce or eliminate your business rates bill. Eligibility varies by UK nation, property type, and business circumstances.

Retail & Consumer Goods Advantage

Retail businesses: permanent lower multipliers from April 2026

If you operate a retail business in England, from April 2026 you benefit from permanently lower business rates multipliers, replacing the temporary RHL Relief scheme. The new small business RHL and standard RHL multipliers give retail, hospitality, and leisure properties lower rates than other commercial properties.

Applies to properties used wholly or mainly for retail purposes
Includes shops, supermarkets, retail warehouses, chemists, post offices, showrooms
No rateable value limit - all sizes qualify

Check the current multiplier rates in the table above for the exact rates applicable to your property size and type. The permanent lower multipliers replace the previous temporary 40% RHL Relief discount.

Who this applies to: Retail businesses operating in England only. Not available in Scotland, Wales, or Northern Ireland. Includes both independent retailers and chains.

Enforcement:

The lower RHL multiplier is applied automatically when the billing authority calculates the rates bill; it is not a discretionary relief that the business applies for. Check the property's classification and multiplier on the bill.

Retail, Hospitality and Leisure Relief (England)

Food, Drink & Hospitality Advantage

Hospitality businesses: permanent lower multipliers from April 2026

Hotels, pubs, restaurants, cafes, and other hospitality businesses in England benefit from permanently lower business rates multipliers from April 2026, replacing the temporary RHL Relief scheme:

Covers properties used wholly or mainly for hospitality purposes
Includes restaurants, cafes, pubs, bars, nightclubs, hotels, guest houses, takeaways
No rateable value limit - all sizes qualify

Who this applies to: Hospitality businesses in England only - not available in Scotland, Wales, or Northern Ireland. Must be wholly or mainly used for preparing and serving food/drink for consumption on or off the premises.

Enforcement:

The lower RHL multiplier is applied automatically when the billing authority calculates the rates bill; it is not a council-administered relief claim. Check the property's classification and multiplier on the bill.

Retail, Hospitality and Leisure Relief (England)

Manufacturing & Engineering Advantage

Manufacturing and industrial businesses: Extended empty property relief

Manufacturing and industrial businesses benefit from longer empty property relief periods compared to retail and office properties:

6 months empty property relief (vs 3 months for retail/office)
Applies to industrial properties: factories, warehouses, distribution centres, workshops
Available across England, Wales, and Scotland (different rates apply)
After 6 months, you pay full rates even if property remains empty

Worked example - England:

Warehouse with rateable value of £100,000 becomes vacant
Months 1-6: £0 rates (empty property relief)
From month 7: full rates apply using the applicable multiplier for your property type and rateable value band

Valuation advantage: Industrial properties typically have lower rateable values per square metre compared to retail or office space, even when the physical space is larger. This is because industrial rents are lower than retail/office rents in the open market.

Strategic timing: If selling or seeking new tenants, the 6-month relief period provides crucial breathing space to avoid rates on vacant industrial space. Plan marketing and handover to maximise this relief window.

Who this applies to: Manufacturing and industrial businesses occupying factories, warehouses, distribution centres, or workshops. Applies to properties across England, Wales, and Scotland. Northern Ireland has different industrial derating rules (see geographic callout).

Enforcement:

Empty property relief is automatically applied by your local billing authority when you notify them the property is vacant. You must inform them within specified timeframes (usually within 6 weeks of vacation).

Empty property rate relief

Charitable rate relief

Mandatory 80% and discretionary 20% relief for registered charities and CASCs.

Mandatory relief (charities): 80% automatic relief for registered charities
Discretionary top-up: Up to 20% additional relief (100% total) at council's discretion
CASC relief: Community Amateur Sports Clubs get 80% mandatory relief
Eligibility requirement: Property must be wholly or mainly used for charitable purposes

What qualifies as charitable use

The property must be used for the charity's purposes, including:

Charity shops selling donated goods
Offices used for charitable administration
Community centres run by charities
Charity-run care homes, hospices, schools

Trading activities: If a charity trades commercially (eg a café open to the public), that area may not qualify for relief.

Charitable rate relief guidance

Charities & Social Enterprise Exemption

Charities and Community Amateur Sports Clubs: Up to 100% relief

Registered charities and Community Amateur Sports Clubs (CASCs) receive the most generous business rates relief in the UK:

80% mandatory relief if property is wholly or mainly used for charitable purposes
Up to 20% discretionary relief at your local council's discretion (bringing total to 100%)
Most councils grant the full 100% relief to charities
No rateable value limit - applies to all charity properties regardless of size

Worked example - Charity shop:

Charity shop with rateable value of £20,000 in England
With 80% mandatory relief: you pay only 20% of the standard rates bill
With additional 20% discretionary relief: £0
Result: 100% relief

Worked example - Community centre:

Community centre with rateable value of £50,000 in England
With 100% relief: £0

Eligibility requirements:

Must be a registered charity with the Charity Commission (England/Wales), OSCR (Scotland), or CCNI (Northern Ireland)
Property must be wholly or mainly used for charitable purposes (at least 51% charitable use)
Mixed-use properties may receive partial relief proportional to charitable use

What qualifies as charitable purposes:

Charity retail shops selling donated goods
Community centres and village halls
Offices used for charitable administration
Warehouses storing donated goods for distribution
Sports facilities operated by CASCs

Who this applies to: Registered charities, Community Amateur Sports Clubs (CASCs), and certain non-profit organisations across England, Scotland, Wales, and Northern Ireland. Must be wholly or mainly used for charitable purposes to qualify for full relief.

Enforcement:

Apply to your local billing authority for mandatory 80% relief. Discretionary top-up relief is assessed on a case-by-case basis. Most councils have policies to grant full 100% relief to charities, but this is not automatic - you must apply separately for the discretionary element.

Charitable rate relief

Multi-site businesses should consider:

In Scotland and England, properties up to £12,000 RV receive 100% relief - optimal threshold for single premises
Scotland offers extended tapered relief to £20,000 RV (single property), providing advantage over England's £15,000 limit
In England, eligible retail, hospitality and leisure properties below £500,000 RV use permanently lower multipliers from April 2026
In Wales, properties just above £6,000 face a significant rates jump - consider downsizing if possible
In Northern Ireland, maximum 50% relief means costs are higher even for small properties - consider manufacturing premises for 70% industrial derating instead

Relief is applied annually. Check eligibility each April when new rates bills are issued and multipliers change.

Business rates relief schemes

Understanding business rates

Charity tax and business rates reliefs

Register as self-employed with HMRC

Set up as a sole trader

Set up an Employee Ownership Trust