After each Business Rates revaluation there is a period of transition.
No bill is allowed to increase by more than a set percentage.
Any property with a large increase in its rateable value will therefore come under the transitional relief scheme. This means that changes to your bill are gradually phased in.
If transitional relief applies to your Business Rates bill, it will be applied automatically.
How much your bill can change by
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 as a result of revaluation
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 below from one year to the next.
If your bill is increasing from 1 April 2026 to 31 March 2029
2026 to 2027
- rateable value up to £20,000 = 5%
- rateable value £20,001 to £100,000 = 15%
- rateable value over £100,000 = 30%
2027 to 2028
- rateable value up to £20,000 = 10% plus inflation
- rateable value £20,001 to £100,000 = 25% plus inflation
- rateable value over £100,000 = 25% plus inflation
2028 to 2029
- rateable value up to £20,000 = 25% plus inflation
- rateable value £20,001 to £100,000 = 40% plus inflation
- rateable value over £100,000 = 25% plus inflation
Transitional relief supplement
There will be a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business scheme to partially fund Transitional Relief.
This will apply for one year from 1 April 2026.