Hospitality Relief

40% relief for Hospitality premises (including Music Venues with capacity up to 1,500) will be introduced for 2025-26, where the property is liable for the Basic Property Rate (rateable value up to £51,000), capped at £110,000 per business.  Please note, the Retail, Hospitality and Leisure relief previously available from 1 April 2020 to 30 June 2022 to mitigate financial hardship during the COVID-19 pandemic will close for applications on 31 March 2025.

You may be entitled to Hospitality Relief, if the following applies:

• the property must be wholly or mainly used for a purpose specified and you must fall into one of the following classes, as detailed below
• the property requires to have a rateable value of £51,000 or less, and
• the maximum amount by which the liability of any person liable to pay rates may be reduced under this regulation is £110,000.

The classes are as follows -

Class 1 -  Bed and breakfast accommodation Use as bed and breakfast accommodation.

Class 2- Camping site Use as a camping site.

Class 3- Caravan Use as a caravan (within the meaning of Part 1 of the Caravan Sites and Control of Development Act 1960(11)).

Class 4 - Caravan site Use as a caravan site (within the meaning of Part 1 of the Caravan Sites and Control of Development Act 1960(12)).

Class 5 - Chalet, holiday hut and bothy Use as a chalet, holiday hut or bothy.

Class 6 - Guest house, hotel and hostel Use as a guest house, hotel or hostel, where no significant element of care is provided.

Class 7- Public house Use as a public house or nightclub where the following conditions are satisfied—

(a) 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 (issue of licence and summary) of the Licensing (Scotland) Act 2005(13),

(b) the premises are used for such sales to members of the public, principally for consumption on the premises, in accordance with the operating plan contained in the premises licence, and

(c) 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.

Class 8 - Restaurant Use for the sale of food or refreshments to members of the public for consumption on those premises, including any café, coffee shop, bistro, fast food restaurant or snack bar that is so   used.

Class 9 - Self-catering holiday accommodation Use as self-catering holiday accommodation.

Class 10 - Timeshare accommodation Use as timeshare accommodation.

Class 11 - Small music venue - Use as a  venue to host live music events where each of the following conditions is satisfied—

(a) the premises are used as an indoor, permanent venue, operating all-year round,

(b) the venue is used wholly or mainly to host live music events for a public audience, and

(c) the venue has a maximum capacity of 1500 persons.

If you fail to declare additional business properties in Scotland on your application, this may constitute fraud and appropriate action may be taken.

To be considered, please complete the application form (Word doc, 44 KB).