Transitional relief limits how much your bill can change each year as a result of business rates revaluation.
You'll get transitional relief if your rates go up or down by more than a certain amount. This means changes to your bill are phased in gradually. We will adjust your bill automatically if you're eligible. How much your bill can change by from one year to the next depends on both:
- your property's rateable value
- whether your bill is increasing or decreasing as a result of revaluation
Figures used in the calculation
The calculation uses the following figures:
- The Notional Chargeable Amount
This is the property's new rateable value multiplied by the relevant multiplier as at 1 April 2026. - The Base Liability
This is the property's previous rateable value multiplied by the relevant multiplier as at 31 March 2026. In subsequent years up to 31 March 2029, the base liability is the chargeable amount shown in the transitional calculation on your bill for the previous year. - The maximum percentage change allowed under the scheme
The maximum percentage change allowed in each year depends on whether the property counts as small, medium and large. The table below shows the different limits'
You stop getting transitional relief when your bill reaches the full amount set by a revaluation. The business rates year is from 1 April to 31 March the following year. Your business rates will change by no more than the percentage caps listed in the tables from one year to the next.
| Rateable value | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 |
|---|---|---|---|
| Small (rateable value up to £20,000) | 5% | 10% plus inflation | 25% plus inflation |
| Medium (rateable value £20,001 to £100,000) | 15% | 25% plus inflation | 40% plus inflation |
| Large (rateable value over £100,000) | 30% | 25% plus inflation | 25% plus inflation |
| Rateable value | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|
| Small (rateable value up to £20,000) | 5% | 10% plus inflation | 25% plus inflation |
| Medium (rateable value £20,001 to £100,000) | 15% | 25% plus inflation | 40% plus inflation |
| Large (rateable value over £100,000) | 30% | 40% plus inflation | 55% plus inflation |
The government also announced that a 1p transitional relief supplement will apply in addition to the relevant multiplier, to partially fund transitional relief. This will apply for one year from 1 April 2026.
Further information about transitional arrangements may be obtained from the local authority or at GOV UK - Business rates overview or at GOV UK - Business rates relief - Transitional relief.
