A tool holder attachable to a spindle of a hammer and which can receive a bit, the bit having a shank with at least one retaining groove extending along part of the shank, the retaining groove having a defined length, a front end and a rear end that limit axial movement of the bit in the tool holder, which tool holder comprises a hollow cylinder having an axis, an axial bore, a rear end that can be attached to the spindle of the hammer, and a front end that can receive the shank of the bit so that the bit is slidable within the cylinder in an axial direction, at least one retaining element that is located so that it can extend radially into the bore of the cylinder and into the at least one retaining groove of the bit so that the retaining element can be hit by the rear end of the retaining groove during the transition to idling and limit the extent of axial movement of the bit within the cylinder, at least one radial restraining element limiting movement of the retaining element in the radial direction, at least one axial restraining block limiting movement of the retaining element in the axial direction, when hit by the retaining element the axial restraining block movable to a limited extent in the axial direction with respect to the radial restraining element, and a resilient element located forward of the axial restraining block and arranged so as to attenuate the impact transmitted through the axial restraining block from the retaining element.