Property values can change significantly at revaluation. Transitional arrangements are designed to phase in these changes gradually, so businesses do not face large or sudden increases in their business rates bills.
Following the 2026 revaluation by the Valuation Office Agency, the Government has introduced a new Transitional Relief Scheme to operate from 1 April 2026. The scheme limits how much your bill can increase each year as a result of changes to your rateable value.
The cost of transitional relief is funded through the non-domestic transitional supplement.
Transitional limits apply if, in any year, the amount you would have to pay (based on your rateable value multiplied by the appropriate multiplier) is higher than the previous year’s bill (based on the amount due on 31 March) by more than the limits set by Government. If this is the case, your bill will only increase by the capped amount.
Any transitional adjustments will be shown on your bill.
Transitional relief limits 2026/27
- Small properties (Rateable Value up to £28,000): 5%
- Medium properties (Rateable Value £28,001 to £100,000): 15%
- Large properties (Rateable Value over £100,000): 30%
Transitional supplement
A 1p transitional supplement will be payable by all business ratepayers not in receipt of transitional relief. This has been introduced for the 2026/27 financial year only. Its intention is to help fund the transitional relief scheme (businesses facing a large increase following the 2026 Revaluation).
The supplement will still be shown on the bill for any ratepayers in receipt of transition relief, but this will be offset by the overall relief scheme.