2026 Retail, Hospitality and Leisure Relief

A Retail, Hospitality and Leisure relief scheme has been put in place from 1 April 2026.  It makes provision for eligible properties in the Retail, Hospitality and Leisure sectors (excluding Licensed Premises and Music Venues) to receive a 15% reduction, and for other eligible properties in the Licensed Premises and Music Venue sectors to receive a 40% reduction. 

Qualifying Criteria

Qualification is limited to properties with a Rateable Value of up to £100,000

  • properties which operate wholly or mainly in Retail, Hospitality and Leisure sectors (excluding Licensed Premises and Music Venues) and are listed in Schedule 1 may qualify for an award of 15% relief on the gross rates payable; and
  • properties which operate wholly or mainly used in the Licensed Premises and Music Venue sectors (which includes restaurants, cafes and coffee shops), and are listed in Schedule 1a may qualify for an award of 40% relief

The total amount of Hospitality Relief which is awarded to a ratepayer may not exceed £110,000.

Schedule 1

Specified Property Uses - Retail, Hospitality and Leisure

Class 1 - Bed and Breakfast Accommodation

Class 2 - Camping Site

Class 3 - Caravan (within the meaning of the Caravan Sites and Control of Development Act 1960)

Class 4 - Caravan Site (within the meaning of the Caravan Sites and Control of Development Act 1960)

Class 5 - Chalet, Holiday Hut or Bothy

Class 6 - Self-catering Holiday Accommodation

Class 7 - Timeshare Accommodation 

Class 8 - Market

Class 9 - Retail Shop

(note: being a building or part of a building that is used for the retail sale of goods to the visiting public for consumption or use elsewhere, for purposes unconnected with a trade or business).

Class 10 - Leisure 

(note: use as an art gallery or centre, sports club, sports centre, sports ground. clubhouse, gymnasium, museum, cinema, theatre, ticket office, recreational centre, recreational ground, park, bingo hall, tourist attraction or facility.  Use as a theme park, soft play centre or venue for recreational activities.  Use as a venue for lectures or lessons undertaken for recreational activities.  Use as an amusement arcade, but excluding those licenced to operate of a sub-category B2 gaming machine as defined in Regulation 5(5) of the Categories of Gaming Machine Regulations 2007. 

Class 11 - Service Providers

(note: use to provide hair and beauty services, shoe repairs, key cutting, photo processing, laundry services, car or tool hire, car washing or repair of domestic/electrical goods).

Class 12 - Massage Parlour or Health Spa

Class 13 - Funeral Parlour 

Class 14 - Travel Agency 

Class 15 - Meeting, Event or Activity space

(note: use as a public hall or venue for hire for events or activities, where the events or activities are principally for the benefit of the public).

Class 16 - Facility for Youth Orgnaizations

Schedule 1a

Specific Purposes - Licensed Premises and Music Venues

Class 1 - Hotel or Hostel (where no significant element of care is provided)

Class 2 - Live Music Venue 

where the following conditions are satisfied

  • it is used as an indoor, permanent venue operating all-year round, and
  • it is used to host live music events for a public audience.

Class 3 - Public House or Night Club

where the following conditions are satisfied:

  • premises licenced to sell alcohol for consumption on and off the premises under section 26 of Licencing (Scotland) Act 2005
  • premises used for the sale of alcohol to the public principally for consumption on the premises in accordance with the premises licence operating plan; and
  • an operating plan in the premises licence does not include the provision that sales are made subject to members of the public residing on the premises or consuming food

Class 4 - Restaurant

(note: used for the sale of food or refreshment to the public for consumption on the premises, including a cafe, coffee shop, fast food restaurant, or snack bar).

Legislation

The legislation governing the 2026 Retail, Hospitality and Leisure Relief scheme is 'The Non-Domestic Rates (Retail, Hospitality and Leisure Relief) (Scotland) Regulations 2026', as amended. A copy of these regulations may be accessed by clicking this link and this link

Application

All awards of 2026 Retail, Hospitality and Leisure Relief are application based. To download an application form, click on this link.

Further Information

For further information on 2026 Hospitality Relief you should contact us.

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