GuideBusiness Rates reliefs and reductions information

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9. Transitional relief

The government has provided a Transitional Relief Scheme to phase in any increased rates charges due to Revaluation 2026. The relief does not apply to increases due to changes to the property after the revaluation date, 1 April 2026. Any Transitional Relief will be shown on your bill if it applies.

The transition scheme for Revaluation 2026 limits bill increases to the following percent plus inflation (the government has set inflation at 0% for 2026/27 transition purposes):

Rateable Value

2026/27

2027/28

2028/29

Small < £20,000

5%

10%

25%

Medium £20,000 to £100,000

15%

25%

40%

Large > £100,000

30%

25%

25%

Example: Medium RV increase

31/03/23 RV = £20,750

01/04/23 RV = £37,500

 

2026/27 Year 1

Base Liability [BL]: £20,750 x 49.9p (2025/26 small business multiplier) = £10,354.25

Appropriate Fraction (transition limit & inflation)[AF]: 1.15 + 0% = 1.15

Notional Chargeable Amount [NCA]: £37,500 x 48p (2026/27 standard rating multiplier) = £18,000.00

Transition = (BL x AF) – NCA = £11,907.39 - £18,000.00 = -£6,092.61

Transitional Supplement* = £37,500 x 1p = £375.00

Transitional Relief = -£6,092.61 - £375.00 = -£6,467.61

*not paid by ratepayers receiving transitional relief, so transition increased by same amount

2026/27 Bill:

Gross Charge                                  £18,000.00

Transition Supplement*               £375.00

Transitional Relief                           -£6,467.61

Amount Due                                   £11,907.39

2027/28 Year 2 (using hypothetical 2% inflation^)

BL: £11,907.39

AF: 1.25 + 2%^ = 1.275

NCA: £37,500 x 49p^ = £18,375

Transition = £15,181.92 - £19,087.50 = -£3,193.07

(no Transitional Supplement planned for 2027/28) 

2027/28 Bill:

Gross Charge                                  £18,375

Transitional Relief                          -£3,193.07

Amount Due                                    £15,181.93