Shropshire Council

Retail, hospitality and leisure relief

Retail, hospitality and leisure relief 2023

In the Autumn Statement on 17 November 2022, the chancellor announced the introduction of a new business rates relief scheme for retail, hospitality and leisure properties worth around £2.1 billion in 2023/24. This will support the businesses that make our high streets and town centres a success, and help them to evolve and adapt to changing consumer demands.

The 2023/24 retail, hospitality and leisure business rates relief scheme provided eligible, occupied, retail, hospitality and leisure properties with a 75% relief, up to a cash cap limit of £110,000 per business.

Retail, hospitality and leisure relief 2024

In the Autumn Statement on 22 November 2023, the chancellor announced that the existing business rates relief scheme for retail, hospitality and leisure properties would be extended and would apply to 2024/2025, retaining the existing scope and providing eligible properties with 75% relief, up to a cap of £110,000 per business.

The relief will be applied automatically to business rates bills to be issued in March 2024, as well as billing throughout the year. If you haven't been awarded this relief but believe that you do qualify please contact the team by completing the online contact form.

Eligibility for the retail, hospitality and leisure relief scheme

Hereditaments that meet the eligibility for the retail, hospitality and leisure scheme will be occupied hereditaments which meet all of the following conditions for the chargeable day:

They are wholly or mainly being used:

  1. as shops, restaurants, cafes, drinking establishments, cinemas or live music venues
  2. for assembly and leisure; or
  3. as hotels, guest & boarding premises or self-catering accommodation

For a more detailed breakdown of the eligibility criteria please see below.

We consider shops, restaurants, cafes, drinking establishments, cinemas and live music venues to mean:

  1. Hereditaments that are being used for the sale of goods to visiting members of the public:
    • Shops (such as: florists, bakers, butchers, grocers, greengrocers, jewellers, stationers, off licences, chemists, newsagents, hardware stores, supermarkets, etc)
    • Charity shops
    • Opticians
    • Post offices
    • Furnishing shops/ display rooms (such as: carpet shops, double glazing, garage doors)
    • Car/caravan show rooms
    • Second-hand car lots
    • Markets
    • Petrol stations
    • Garden centres
    • Art galleries (where art is for sale/hire)
  2. Hereditaments that are being used for the provision of the following services to visiting members of the public:
    • Hair and beauty services (such as: hairdressers, nail bars, beauty salons, tanning shops, etc)
    • Shoe repairs/key cutting
    • Travel agents
    • Ticket offices e.g. for theatre
    • Dry cleaners
    • Launderettes
    • PC/TV/domestic appliance repair
    • Funeral directors
    • Photo processing
    • Tool hire
    • Car hire
  3. Hereditaments that are being used for the sale of food and/or drink to visiting members of the public:
    • Restaurants
    • Takeaways
    • Sandwich shops
    • Coffee shops
    • Pubs
    • Bars
  4. Hereditaments which are being used as cinemas
  5. Hereditaments that are being used as live music venues:
    • Live music venues are hereditaments wholly or mainly used for the performance of live music for the purpose of entertaining an audience. Hereditaments cannot be considered a live music venue for the purpose of business rates relief where a venue is wholly or mainly used as a nightclub or a theatre, for the purposes of the Town and Country Planning (Use Classes) Order 1987 (as amended).
    • Hereditaments can be a live music venue even if used for other activities, but only if those other activities (i) are merely ancillary or incidental to the performance of live music (e.g. the sale/supply of alcohol to audience members) or (ii) do not affect the fact that the primary activity for the premises is the performance of live music (e.g. because those other activities are insufficiently regular or frequent, such as a polling station or a fortnightly community event).
    • There may be circumstances in which it is difficult to tell whether an activity is a performance of live music or, instead, the playing of recorded music. Although we would expect this would be clear in most circumstances, guidance on this may be found in Chapter 16 of the statutory guidance issued in April 2018 under section 182 of the Licensing Act 2003.

We consider assembly and leisure to mean:

  1. Hereditaments that are being used for the provision of sport, leisure and facilities to visiting members of the public (including for the viewing of such activities).
    • Sports grounds and clubs
    • Museums and art galleries
    • Nightclubs
    • Sport and leisure facilities
    • Stately homes and historic houses
    • Theatres
    • Tourist attractions
    • Gyms
    • Wellness centres, spas, massage parlours
    • Casinos, gambling clubs and bingo halls
  2. Hereditaments that are being used for the assembly of visiting members of the public.
    • Public halls
    • Clubhouses, clubs and institutions

We consider hotels, guest & boarding premises and self-catering accommodation to mean:

  1. Hereditaments where the non-domestic part is being used for the provision of living accommodation as a business:
    • Hotels, Guest and Boarding Houses
    • Holiday homes
    • Caravan parks and sites

To qualify for the relief the hereditament should be wholly or mainly being used for the above qualifying purposes. In a similar way to other reliefs (such as charity relief), this is a test on use rather than occupation. Therefore, hereditaments which are occupied but not wholly or mainly used for the qualifying purpose will not qualify for the relief.

The list set out above is not intended to be exhaustive as it would be impossible to list the many and varied uses that exist within the qualifying purposes.

The list below sets out the types of uses that the government does not consider to be an eligible use for the purpose of this discount.

  1. Hereditaments that are being used for the provision of the following services to visiting members of the public
    • Financial services (e.g. banks, building societies, cash points, bureaux de change, short-term loan providers, betting shops)
    • Medical services (e.g. vets, dentists, doctors, osteopaths, chiropractors)
    • Professional services (e.g. solicitors, accountants, insurance agents/ financial advisers, employment agencies, estate agents, letting agents)
    • Post office sorting offices
  2. Hereditaments that are not reasonably accessible to visiting members of the public

Subsidy control

In line with the government conditions, a ratepayer may only claim up to £110,000 of support under the 2024/25 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 can't claim up to the cash cap for each company) and 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 2024/25 or the minimal financial assistance limit of £315,000 over three years (including 2024/25). Further details of the cash cap and subsidy control can be found on the Gov.UK website.