Business rates relief schemes

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 six-tier multiplier system gives 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.

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

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.

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.

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