Rate relief
Retail, hospitality and leisure relief scheme 2025/2026
At the autumn statement, the Chancellor announced that eligible ratepayers will receive 40% relief on their business rates bills for the year 2025/26 up to a maximum cash cap of £110,000.
Relief will be provided to eligible occupied retail, hospitality and leisure properties in 2025/26.
2025/26 retail, hospitality and leisure scheme details and criteria
The cash cap and subsidy control
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 of 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 also 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.
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 three-year period (consisting of the current financial year and the two 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 three-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 three years (including 2025/26).
Find further details of the cash cap and subsidy control on GOV.UK.
Small business rate relief
Ratepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
Generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer may receive a percentage reduction in their rates bill. For a property with a rateable value of not more than £12,000, the ratepayer may receive a 100% reduction in their rates bill. The relief tapers off where the rateable value is between £12,000 and £15,000.
This relief is only available to ratepayers who occupy either:
- one property, or
- one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.
The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.
The Government has introduced additional support to small businesses. For those businesses that occupy an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.
Where a ratepayer meets the eligibility criteria and has not received the relief they should complete the application form below. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically continue to receive relief in each new valuation period.
It is important that certain changes are notified to us by a ratepayer who is in receipt of this relief. These are:
- the ratepayer taking up occupation of an additional property, and
- an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
You can also see further information on small business rate relief on GOV.UK
Apply for small business rate relief
Use this form to tell us if you want to apply for or cancel your small business rate relief.
Apply for small business rate relief
Supporting small businesses relief
At the 2022 autumn statement, the Chancellor announced that the 2023 supporting small business (SSB) scheme would cap bill increases at £600 per year for any business losing eligibility for some or all small business rate relief or rural rate relief at the 2023 revaluation. SSB was first introduced at the 2017 revaluation to support ratepayers facing bill increases greater than the Transitional Relief caps due to the loss of small business rate relief or rural rate relief.
Supporting small business relief will apply to eligible ratepayers for financial years 2023/24 to 2025/26. The SSB relief will be applied automatically to your business rate account if you are eligible.
SSB relief helps ratepayers of occupied properties who lost some or all of their small business rate relief or Rural Rate Relief due to a change in their Rateable Value in the 2023 revaluation.
SSB relief limits the increase per year in the bills of these ratepayers to a cash value of £600 per year. The starting amount of your 2022/23 rate bill for this purpose is worked out based on a full year of occupied rates using your circumstances on 31 March 2023, not including discretionary reliefs such as Retail Discount and discretionary top-up Rural Rate Relief.
Ratepayers who qualify for SSB relief in 2023/24 due to receiving the extension of transitional relief and Supporting Small Business Relief in 2022/23 can receive SSB relief for 2023/24 only. All other ratepayers can receive SSB relief from 2023/24 until 2025/26, provided they meet the criteria.
Eligibility for SSB relief is not affected by a change in ratepayer. However, if the property becomes unoccupied, it will not be eligible for SSB relief when it is re-occupied.
Additional information
While eligible for the SSB relief scheme, those whose 2023 rateable values are £51,000 or more will not be liable to pay the supplement (1.3p) to fund small business rate relief. As with all reliefs, the amount awarded will be recalculated should there be a change of circumstances (such as a change of rateable value).
Charity and registered Community Amateur Sports Club (CASC) relief
Charities and registered Community Amateur Sports Clubs are entitled to 80 per cent relief where the property is occupied by the charity or club and is wholly or mainly used for charitable purposes or as a registered community amateur sports club. The council has discretion to give further relief on the remaining bill.
To register as a CASC visit the HM Revenues and Customs website or call 0845 302 0203.
To discuss your businesses eligibility please contact the business rates team on 01242 264255 or email business.rates@cheltenham.gov.uk