Islands and prescribed remote rural areas Retail, Leisure and Hospitality Relief

In December 2025, The Scottish Government announced in their Budget that they were extending the Island and Remote Areas Hospitality Relief to include Retail and Leisure Businesses.

On application 100% relief can be applied in 2026-27 for properties used for specified retail, leisure and hospitality purposes located on islands as defined by the Islands (Scotland) Act 2018, as well as in the specified areas of Knoydart, Scoraig and Cape Wrath.

All Retail, Leisure and Hospitality Relief is capped at £110,000 per business in 2026-27.

Please note that if you have previously qualified for Hospitality Relief during 2025/26, then this should be applied automatically. If not then you will need to complete an application form and return it to the Revenues Section, Orkney Islands Council, Council Offices, Kirkwall, Orkney, KW15 1NY or my email to revenues@orkney.gov.uk .