Comparison · Business Rates · 2026
Retail, Hospitality & Leisure Relief vs Small Business Rates Relief UK 2026
Business rates reliefs are easy to confuse because several schemes can apply to the same property. Small Business Rates Relief is a permanent, sector-neutral scheme based on rateable value; RHL relief is a sector-specific, Budget-announced discount for shops, hospitality and leisure premises. This guide compares both for 2026/27.
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TL;DR - 30-Second Summary
- - SBRR: permanent, any sector, 100% relief up to £12,000 rateable value, tapered to £15,000
- - RHL relief: retail/hospitality/leisure only, percentage discount with a cash cap, reviewed at each Budget
- - Properties already at 100% SBRR gain nothing further from RHL relief
- - Always check the current year's RHL rate and cap on gov.uk — both change at Budgets
Side by Side
| Feature | Small Business Rates Relief | RHL Relief |
|---|---|---|
| Sector | Any qualifying small business | Retail, hospitality & leisure only |
| Basis | Rateable value threshold (up to £15,000) | Percentage discount, no rateable value cap |
| Scheme status | Permanent | Reviewed and reset at each Budget |
| Cash cap per business | Not applicable | Yes, set annually |
| Can combine? | Only useful together if SBRR does not already give 100% relief | |
Verdict
If your rateable value is below £12,000, Small Business Rates Relief already reduces your bill to zero and RHL relief adds nothing further. If you run a shop, restaurant, pub, gym or similar premises with a rateable value above the SBRR threshold, RHL relief is the scheme worth checking, since it can meaningfully reduce a bill that SBRR does not touch. Confirm the current percentage discount and cash cap for the year with your local billing authority, as RHL relief terms are reset at each Budget.
Frequently Asked Questions
What is Small Business Rates Relief (SBRR)?
SBRR is a permanent, UK-wide (with devolved variants) business rates relief for any qualifying small business, regardless of sector. Properties with a rateable value up to £12,000 typically receive 100% relief (paying no business rates at all), with relief tapering down for rateable values between £12,001 and £15,000. It applies to a single property in most cases and is not limited to any particular trade.
What is Retail, Hospitality and Leisure (RHL) relief?
RHL relief is a sector-specific discretionary relief for businesses in retail, hospitality and leisure — shops, restaurants, cafes, pubs, cinemas, gyms and similar premises. It is announced and reviewed at each Budget, applies a percentage discount to the business rates bill (subject to a per-business cash cap), and unlike SBRR is not tied to the rateable value threshold — larger qualifying premises can still benefit, up to the cap.
Can a business claim both RHL relief and Small Business Rates Relief?
A property already receiving 100% relief under SBRR (rateable value up to £12,000) has nothing further to gain from RHL relief on that property, since the rates bill is already zero. For qualifying retail, hospitality or leisure properties with a rateable value above the SBRR threshold, RHL relief can apply on its own, giving a percentage discount that SBRR alone would not provide at that value.
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What kind of premises typically qualify for RHL relief?
Eligible premises are generally those used wholly or mainly for retail sale of goods, or for the provision of hospitality (restaurants, cafes, pubs, bars) or leisure (cinemas, gyms, sports clubs, hotels, guest houses). Purely office-based, professional services, or non-customer-facing business premises typically do not qualify, which is the key eligibility difference from SBRR.
Does RHL relief have a maximum discount per business?
Yes — RHL relief is subject to a cash cap per business (covering all its properties combined) that is set and reviewed at each Budget, alongside the percentage discount rate itself. Because both the rate and cap have changed at several recent Budgets, always check the current year's figures on gov.uk or your local council's business rates page rather than relying on a previous year's numbers.
Do I need to apply for these reliefs or are they automatic?
SBRR generally needs to be applied for through your local billing authority if it is not already showing on your bill, though many councils apply it automatically once eligibility is identified. RHL relief is usually applied automatically to eligible properties by the local authority once the Budget confirms the scheme for that year, but it is worth checking your business rates bill or contacting your council directly to confirm it has been applied correctly.
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Disclaimer: This comparison is general educational information and not tax advice. RHL relief rates and cash caps are reset at each Budget and vary; SBRR thresholds may also change. Refer to gov.uk/apply-for-business-rate-relief and your local council for the current year's figures.