Business rates: Retail, Hospitality and Leisure Relief
For the 2026/27 financial year, you may get 15% or 40% relief on your business rates if your property is wholly or mainly used for retail, hospitality or leisure.
There is a relief cap of £110,000 per ratepayer across all eligible properties in Scotland.
Eligibility
To qualify, properties must have a Rateable Value of £100,000 or less.
You are not eligible for relief if your property:
- Needs a short-term let licence to operate but does not have one
- Is unoccupied
Properties eligible for 15% relief
Properties mainly used for the following purposes can qualify.
Accommodation
- Bed and breakfast or guest house
- Self-catering holiday accommodation
- Timeshare accommodation
- Chalet, holiday hut or bothy
- Camping site
- Caravan or caravan site (as defined in Part 1 of the Caravan Sites and Control of Development Act 1960)
Retail and markets
- Market (where goods are sold directly to the public)
- Shop selling goods to the public for use or consumption off the premises
Leisure and attractions
- Arts, culture or entertainment venue (for example gallery, museum, cinema or theatre)
- Sports or fitness facility (for example gym, sports club or ground)
- Tourist attraction or facility
- Theme park, soft play centre, or similar recreational activities (for example bowling, laser tag, paintball, escape rooms or miniature golf)
- Amusement arcade (excluding premises licensed for sub-category B2 gaming machines under the Categories of Gaming Machine Regulations 2007)
Community and learning spaces
- Venue for recreational classes (for example language, music, dance or pottery and art lessons)
- Public hall or event space: mainly used as a public hall or venue for events or activities for members of the public
- Venue used by voluntary or youth organisations (for example a scout hut)
Services
- Hair and beauty services
- Shoe repairs
- Key cutting
- Photo processing
- Laundry services
- Car or tool hire
- Car washing
- Repair of household or electrical goods
- Massage parlour or health spa
- Funeral parlour
- Travel agency or tour operator
Properties eligible for 40% relief
Properties mainly used for the following purposes can qualify:
- Hotel or hostel: where no significant element of care is provide
- Restaurant, café, coffee shop or similar, serving food or drink for consumption on the premises
- Live music venue, where both of the following apply:
- The premises are a permanent indoor venue open all year
- The venue is used to host live music events for a public audience
- Pub or nightclub, where all of the following apply:
- A premises licence authorising the sale of alcohol for consumption both on and off the premises has been issued by a licensing board under section 26 of the Licensing (Scotland) Act 2005
- Alcohol is sold to the public, mainly for consumption on the premises in accordance with the operating plan contained in the premises licence
- The operating plan contained in the premises licence does not include any provision that such sales are made subject to those members of the public residing at, or consuming food on, the premises
Relief cap and subsidy control
This relief is capped under the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2021.
It is awarded as TCA de minimis subsidy, which means there are limits on how much support a business can receive.
You can view a guide to awarding subsidies.
How to apply
To apply for relief complete the online form.