From 1 April 2026, the government is introducing lower business rates multipliers for qualifying Retail, Hospitality and Leisure (RHL) properties with a Rateable Value (RV) below £500,000.
These rules apply in England, and Leeds City Council must follow the national legislation when deciding whether a property qualifies for the RHL multipliers.
Overview
From April 2026:
- small business RHL multiplier will apply to qualifying RHL properties with an RV below £51,000
- standard RHL multiplier will apply to qualifying RHL properties with an RV between £51,000 and £499,999
These lower multipliers replace the temporary RHL relief used in previous years and are intended to give businesses longterm certainty.
There is no cash cap, meaning all qualifying properties in a chain will benefit from the reduced multipliers.
Pubs and live music venues will receive extra support in 2026/27, including a 15% discount on top of any other eligible reliefs. Their business rates bills will be frozen in real terms in 2027/28 and 2028/29.
Local authorities must decide whether a property meets the legal definition of RHL based on how it is used.
Qualification criteria
A property qualifies if it is:
- Occupied.
- Wholly or mainly used for a retail, hospitality or leisure purpose.
- Open to visiting members of the public.
- Has a rateable value below £500,000.
Properties must meet all criteria. If the property is empty, the standard national multipliers apply once empty property relief ends.
To decide whether a property is “wholly or mainly” used for RHL, we may consider things like how the space is used, turnover, staffing, or the main purpose of the business.
Qualifying purposes
There are 3 main categories:
1. Retail
Properties selling or hiring goods or providing personal services directly to the public.
Examples include:
- shops, supermarkets, shopping centres
- pharmacies, opticians
- petrol stations, garden centres, car and caravan showrooms
- art galleries where the artwork is for sale
- places hiring out domestic items, tools, cars or bikes
2. Hospitality
Properties where food or drink is sold to be eaten on or off the premises, and places offering holiday accommodation.
Example include:
- restaurants, cafés, takeaways
- coffee shops, pubs, bars
- hotels, guest houses, bed and breakfasts
- holiday homes, serviced apartments, campsites, caravan parks
Accommodation that includes significant care services (such as nursing homes) does not qualify.
3. Leisure
Properties providing cultural, community or recreational activities to the public.
Examples include:
- cinemas, theatres, museums, libraries, galleries
- nightclubs, live music venues
- gyms, leisure centres, sports clubs, swimming pools
- health spas, wellness centres, massage parlours
- bingo halls, casinos, theme parks
- soft play, bowling alleys, escape rooms, mini golf
- zoos and similar attractions
Properties requiring membership, tickets or appointments (such as gyms or hairdressers) still count as being open to the public.
Online sales or bookings do not disqualify a property, as long as the main use still involves in-person public access.
Properties that do not qualify
Some types of buildings are specifically excluded by legislation, even if they are open to the public.
These include:
Financial services
- Banks, building societies, ATMs.
- Insurance providers, loan companies.
Medical or health services
- Doctors, dentists, physiotherapists.
- Audiology, cosmetic clinics.
Professional services
- Law firms, accountants, surveyors.
- Estate agents, letting agents.
- Engineers, architects.
Other excluded types
- Warehouses used mainly for online order storage or distribution.
- Recording and film studios.
- Crematoria.
- Taxi and minicab businesses.
- Show homes and conference centres.
- Betting shops.
- Postal sorting depots.
- Job centres and advice centres.
- Car parks.
- Transport hubs (bus stations, train stations, airports, ferry ports).
- Educational establishments (schools, nurseries, colleges, universities).
Properties used mainly for alcohol production (such as breweries) do not qualify unless the main activity is public-facing, such as a bar or tours.
Film and theatre production companies are excluded as they are not open to visiting members of the public.
Summary
A property may qualify for the RHL multipliers if:
- it is occupied
- it has a rateable value below £500,000
- it is mainly used for retail, hospitality, or leisure
- it is open to the public for in-person services
We will assess each property based on its main use, following national legislation.
View more information about notification of non-domestic rating multipliers for 2026/27 at GOV.UK.
