Retail, Hospitality and Leisure Business Rates Relief Scheme
At the Autumn Budget on Wednesday 30 October 2024, the Chancellor announced the extension of the business rates relief scheme for retail, hospitality, and leisure (RHL) properties. The 2025/26 scheme will provide eligible occupied retail, hospitality, and leisure properties with a 40% relief, up to a cash cap limit of £110,000 per business.
However, it is important that you please carefully review the following details to ensure that you continue to qualify.
Qualification criteria
With the 2025/26 scheme providing 40% relief to eligible retail, hospitality, and leisure properties, up to a maximum cash cap limit of £110,000 per business. To qualify for the relief, the property must be occupied i.e. open/trading, and be wholly or mainly used for retail, hospitality and leisure purposes allowing reasonable access to visiting members of the public.
In line with the conditions set by the government, a ratepayer may only claim up to £110,000 of support under the 2025/26 Retail, Hospitality and Leisure Relief Scheme for all their eligible hereditaments.
This cash cap applies at a Group company level (so holding companies and subsidiaries cannot claim up to the cash cap for each company) and to organisations which, although not a company, have such an interest in a company that they would, if they were a company, result in its being the holding company.
UK subsidy rules
Furthermore, the Retail, Hospitality and Leisure Relief Scheme is subject to the Minimal Financial Assistance limits under the Subsidy Control Act. This means no recipient can receive over £315,000 over a 3-year period (consisting of the current financial year and the 2 previous financial years). Covid business grants received from local government and any other subsidy claimed under the Minimal Financial Assistance or Small Amounts of Financial Assistance limit over the 3-year period should be counted.
Therefore, to claim the Retail, Hospitality and Leisure relief you must not have exceeded either the £110,000 cash cap for 2025/26 or the Minimal Financial Assistance limit of £315,000 over 3 years (including 2025/26).
Further details on the cash cap, subsidy control and Business Rates Relief: 2025/26 Retail, Hospitality and Leisure Scheme can be found on the GOV.UK website.
Action required by you
Please check your revised bill. You only need to notify us if any of the following 3 options are relevant:
- National cash caps are exceeded
- The property is empty
- You wish to refuse this relief (If you opt out of the expanded retail discount for the 2025 to 2026 tax year you cannot change your mind.)
If none of the above is relevant, no further action is needed.
Please email us at businessrates@hillingdon.gov.uk if your business does not qualify for the expanded discount from 1 April 2025 stating the reason the property does not qualify. If the property is empty, please state the date the property became completely empty.