If you run a retail, hospitality or leisure business in England, your 2026/27 business rates bill may look very different from last year’s. The temporary Retail, Hospitality and Leisure Business Rates Relief scheme ended on 31 March 2026, but it has been replaced by permanently lower business rates multipliers for qualifying retail, hospitality and leisure properties with rateable values below £500,000.
Business rates remain one of the biggest fixed costs for premises-based businesses. Shops, cafés, restaurants, pubs, salons, gyms, hotels and leisure venues should all check their 2026/27 bill carefully to make sure the correct multiplier, reliefs and transitional protections have been applied.
This guide explains what is available in 2026/27, who qualifies, how the rules work and what you should check with your council. If you are unsure where to start, speaking to accountants in Slough can help you review the rates position alongside your wider business finances.
What changed from April 2026?
For 2025/26, eligible retail, hospitality and leisure properties in England could receive 40% RHL relief, subject to a £110,000 cash cap per business.
From 1 April 2026, that relief scheme ended. You cannot make a new claim for 2026/27 RHL relief. Instead, qualifying RHL properties now benefit through lower business rates multipliers.
The 2026/27 multipliers in England are:
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| Property type | Rateable value | 2026/27 multiplier |
|---|---|---|
| Retail, hospitality and leisure small business multiplier | Below £51,000 | 38.2p |
| Other small business multiplier | Below £51,000 | 43.2p |
| Retail, hospitality and leisure standard multiplier | £51,000 to £499,999 | 43.0p |
| Other standard multiplier | £51,000 to £499,999 | 48.0p |
| High-value properties, all uses | £500,000 and above | 50.8p |
The key difference is that the lower RHL multipliers are built into the calculation of your rates bill rather than claimed as a separate 40% discount. There is no £110,000 cash cap for the lower multipliers, so qualifying properties in larger chains can still benefit where the individual property is within scope.
Who qualifies for the RHL multipliers?
The lower RHL multipliers apply to properties that are wholly or mainly used for qualifying retail, hospitality or leisure purposes.
Qualifying retail uses can include shops, supermarkets, post offices, petrol stations, sandwich shops, showrooms, hairdressers, beauty salons and similar businesses open to the public.
Hospitality uses can include restaurants, cafés, pubs, bars, hotels, guest houses and some self-catering accommodation.
Leisure uses can include gyms, sports facilities, theatres, cinemas, music venues, tourist attractions and similar venues where the public attend for leisure activities.
The test is based on the use of the property, not just how the Valuation Office describes it. If your property is mixed-use, the question is whether it is wholly or mainly used for qualifying activity.
Properties that are not reasonably accessible to the public, or that are mainly offices, industrial units, storage premises or financial and professional services premises, are unlikely to qualify.
Small Business Rates Relief
Small Business Rates Relief remains separate from the RHL multiplier rules.
You may qualify for Small Business Rates Relief if your property has a rateable value below £15,000 and your business only uses one property. You may still qualify with more than one property if your other properties are very small and the total rateable value remains within the permitted limits.
If your property has a rateable value of £12,000 or less, you usually pay no business rates, provided it is the only property your business uses. If the rateable value is between £12,001 and £15,000, the relief tapers down from 100% to 0%.
If you are close to the threshold, check your rateable value carefully. A small valuation change can make a meaningful difference to the relief available.
Supporting Small Business relief
The 2026 revaluation means some businesses have lost all or part of their Small Business Rates Relief, Rural Rate Relief or previous RHL relief. Supporting Small Business relief is intended to limit sharp bill increases for affected ratepayers.
For some businesses losing previous RHL relief, the increase in the 2026/27 bill may be capped at the higher of £800 or the relevant transitional relief cap, before other reliefs and local supplements are applied.
This is one of the most important checks to make on your 2026/27 bill. Your council should apply it automatically where you qualify, but you should still review the calculation and query it if the increase seems unexpectedly high.
The 2026 business rates revaluation
The latest business rates revaluation took effect in England and Wales on 1 April 2026. It is based on open market rental values as at 1 April 2024.
That matters because your current rates bill may have changed for 2 reasons at once:
- Your rateable value may have changed because of the 2026 revaluation
- Your multiplier may have changed because of the new 2026/27 rates structure
If you have not reviewed your rateable value since the new list came into effect, check it through the Valuation Office system. If you believe it is wrong, you can use the Check, Challenge, Appeal process.
Maintaining regular financial reporting services throughout the year helps you understand whether your premises costs are moving in line with revenue, margin and cash flow.
Transitional relief
Transitional relief limits how much your bill can rise each year because of a revaluation. It is applied automatically by your council where you qualify.
For the 2026 revaluation, the caps on bill increases are based on the property’s rateable value. For 2026/27, the caps are:
| Rateable value | 2026/27 cap on increase |
|---|---|
| Up to £20,000, or £28,000 in London | 5% |
| £20,001 to £100,000, or £28,001 to £100,000 in London | 15% |
| Over £100,000 | 30% |
These caps are applied before changes in some other reliefs and local supplements. If your bill has risen sharply, ask your council whether transitional relief or Supporting Small Business relief has been applied correctly.
Empty property relief
If a business property is empty, business rates are usually not charged for the first 3 months after it becomes empty. Industrial premises, such as warehouses, can usually receive an additional 3 months.
Some properties may receive longer relief, including listed buildings until they are reoccupied, buildings with a rateable value under £2,900 until they are reoccupied, and charity or community amateur sports club properties where the next use will qualify.
If you are a landlord with commercial premises as well as residential property, our post on landlord accounting is worth reading alongside this guide.
Charitable, community and hardship relief
If your property is mainly used for charitable purposes, you may qualify for charitable rate relief of up to 80%. Your council may also be able to top this up with discretionary relief.
Community amateur sports clubs may also qualify where the relevant conditions are met.
Hardship relief is different. Councils can reduce or cancel a business rates bill where the business would be in financial difficulty without relief and where granting relief is in the interests of local people. You may need to provide financial evidence and explain the community value of your business.
Keeping clear records through business bookkeeping services gives you a stronger evidence base if you need to apply for hardship or discretionary relief.
Business rates and your tax position
Business rates are usually a deductible business expense when calculating taxable profits. If you trade through a limited company, they reduce taxable profits for corporation tax purposes. If you are a sole trader or partner, they reduce taxable trading profits for income tax purposes.
If you receive a refund or adjustment for a previous period, make sure it is treated correctly in the right accounting period. This is the kind of detail a good accountant for sole trader or company adviser should pick up as part of routine year-end work.
For limited companies, making sure your company accounts reflect your business rates position accurately is part of presenting a true and fair view of the business.
How to check whether you are claiming everything
Start with your current rates bill. Check:
- The rateable value
- The multiplier used
- Whether the property has been treated as qualifying RHL, where relevant
- Whether Small Business Rates Relief is applied
- Whether Supporting Small Business relief is applied
- Whether transitional relief is applied
- Whether empty property, charitable, rural, hardship or discretionary relief could apply
- Whether the bill reflects the right occupier and correct property use
If you have more than one premises, review them together. Business rates are often checked property by property, but the total cash flow impact is a business-wide issue.
Working with small business accountants who understand both tax and management reporting can help you see whether business rates are being treated as a fixed cost you simply accept, or a cost that should be reviewed and challenged where appropriate.
Business rates reform: what to watch
The 2026/27 rating year is part of a wider business rates reform programme. The move from temporary RHL relief to lower permanent RHL multipliers is designed to support bricks-and-mortar retail, hospitality and leisure businesses more consistently.
However, bills can still rise because of revaluation, multiplier changes, local supplements and the loss of temporary relief. That makes it important to check your bill rather than assuming the council has applied everything correctly.
Our post on autumn Budget 2025 summary covers broader tax and business measures. If your accountant already handles your VAT returns, adding a business rates review to your annual finance conversation is a sensible step.
For wider financial planning, our guides on cash flow forecasting for small businesses, what an accountant does for an SME, corporation tax mistakes to avoid, director pay salary vs dividends in 2026 and online accountants vs traditional firms are also useful.
Frequently asked questions
Can I still claim 40% RHL relief in 2026/27?
No. The 40% RHL relief applied for 2025/26 and ended on 31 March 2026. From 1 April 2026, qualifying retail, hospitality and leisure properties use lower RHL multipliers instead.
Do I need to apply for the lower RHL multiplier?
The multiplier should be applied through the business rates bill where your property qualifies. However, you should check your bill and contact your council if your property use appears to have been treated incorrectly.
Can I get Small Business Rates Relief as well?
Possibly. Small Business Rates Relief depends mainly on rateable value and the number of properties your business occupies. If your property has a rateable value of £12,000 or less and it is your only property, you usually pay no business rates.
What is the rateable value?
The rateable value is the Valuation Office’s estimate of the annual open market rental value of your property at the valuation date. For the 2026 list, the valuation date is 1 April 2024. It is not necessarily the rent you actually pay.
What should I do if I think my rateable value is wrong?
Use the Valuation Office Check, Challenge, Appeal process. It is worth gathering rental evidence and professional advice before challenging, because the process can take time and requires detail.
Can I claim relief if I own the building?
Yes. Business rates are usually paid by the occupier. If your business occupies the premises, owning the building does not prevent you from qualifying for relevant reliefs or lower multipliers.
Talk to Asmat & Co about your business rates position
Business rates are one of those costs too many businesses accept without question. With the 2026 revaluation, new RHL multipliers, transitional relief and Supporting Small Business relief all interacting, it is worth checking your bill properly.
At Asmat & Co, our team of accountants for small businesses works with retail, hospitality and leisure businesses to manage costs, improve cash flow and keep accounts accurate. We serve businesses across Slough, Reading and the wider region with practical accounting and tax support.
If you would like to review your business rates position as part of a broader conversation about your finances, get in touch with our team today and make sure you are not paying more than you need to.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
