Parliament has passed legislation defining which properties will be eligible for the new Retail, Hospitality and Leisure (RHL) business rates multipliers, which come into effect on 1 April 2026. HM Treasury has also issued guidance to local authorities on how to apply these regulations.

Earlier this year, the Non-Domestic Rating (Multipliers and Private Schools) Act 2025 established the legal framework for introducing higher multipliers for large businesses and lower multipliers for RHL properties. The aim is to support high street RHL businesses that serve 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 for properties with a rateable value below £51,000.

  • A standard RHL multiplier for properties with a rateable value between £51,000 and £499,999.

The exact rates for these multipliers will be confirmed during Budget 2025, which is scheduled for 26 November 2025.

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

Broadly, most properties that received the 40% RHL relief in 2025-26 will qualify for the proposed lower multipliers. However, local authorities previously had discretion in awarding the 40% relief, whereas the new RHL multipliers will only apply where the legal definition is met. As a result, some properties currently benefiting from relief could fall outside the new measures.

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