Transitional rates relief
Transitional relief supplement
The transitional relief supplement is being introduced from 1 April 2026 and will be in place for the 2026 to 2027 financial year only. This additional charge will be used to help fund the transitional relief scheme for the 2026 rating list. It is calculated by multiplying your rateable value by 0.01.
This charge will be added to your bill and will show as transitional relief supplement. If your property receives transitional relief or supporting small business relief, this extra charge will still be applied, but it will not increase your bill beyond the limits set by those relief schemes.
The transitional relief scheme
Transitional relief limits how much a business rates bill can increase each year following a revaluation. Its purpose is to protect customers from sharp increases should their rateable value increase substantially from one rating list to the next.
You do not need to apply for this reduction as it will automatically be applied where appropriate.
For the 2023 list the following transitional limits are in place -
| Financial year | Rateable value £20,000 or less | Rateable value £20,001 to £100,000 | Rateable value £100,001 or above |
|---|---|---|---|
| 2023 to 2024 | 5% | 15% | 30% |
| 2024 to 2025 | 10% | 25% | 40% |
| 2025 to 2026 | 25% | 40% | 55% |
For the 2026 list the following transitional limits are in place -
| Financial year | Rateable value £20,000 or less | Rateable value £20,001 to £100,000 | Rateable value £100,001 or above |
|---|---|---|---|
| 2026 to 2027 | 5% | 15% | 30% |
| 2027 to 2028 | 10% plus inflation | 25% plus inflation | 40% plus inflation |
| 2028 to 2029 | 25% plus inflation | 40% plus inflation | 25% plus inflation |