Will Your Business Qualify for the New RHL Multipliers?

Legislation has been passed by Parliament that defines which properties are eligible for the new Retail, Hospitality and Leisure (RHL) business rates multipliers which come into force on 1 April 2026. HM Treasury has also provided guidance to local authorities on how to apply these regulations.

Earlier in the year, the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 laid the legal basis for introducing higher multipliers for the properties of large businesses and lower multipliers for RHL properties. The intention is to help high street RHL businesses that sell to in-person customers.

From April 2026, two lower business rates multipliers for RHL properties will be introduced for rateable values below £500,000.

• A small business RHL multiplier will apply where the rateable value is below £51,000.
• A standard RHL multiplier will apply where the rateable value is between £51,000 and £499,999.

The rates for these multipliers will be confirmed during Budget 2025, which is being held on 26 November 2025.

In a change from the RHL business rates relief that is currently in place, it is intended that there will be no cash cap. This means the RHL multipliers will apply to any property that meets the statutory definition of a RHL property contained in the new regulations.

Broadly speaking, the new definitions will mean that most properties receiving the 40% RHL relief in 2025-26 will qualify for the proposed lower multipliers. However, local authorities have had discretion in how they have awarded the 40% RHL relief, whereas the new RHL multipliers will only apply where the legal definition is met. This may mean that some properties currently receiving relief could fall outside the new relief measures.

To see whether your RHL business property will qualify for the new RHL multipliers, it is worth reviewing HM Treasury’s guidance