Transitional Relief

Transitional relief will be given to support business ratepayers facing large increases following the revaluation of their business premises effective from 1st April 2026.  The scheme subsists for up to three years, but entitlement may end earlier if the eligibility criteria are no longer met.

Businesses will not need to apply for transitional relief as it will be applied to bills automatically.

Any increase in the rateable value of a property that occurs after 1st April 2026, will not attract transitional relief (although any transitional relief awarded based upon the rateable value prior to the change, may continue to apply).

Transitional relief is calculated using a statutory formula that compares the amount payable in 2025/26 (a “base liability”) with the notional chargeable (“NCA”) amount for 2026/27.

If the business rates charge increases by more than a ‘threshold’ set by the government, the amount of the increase is restricted.

Sometimes, the calculation may be more complex. An example of this is when small business rate relief is also awarded after properties are split or merged.

If you need help to understand a complex calculation, you can request an explanation on our Enquiry form. (Select 'Request', then 'My query is not listed')

Transitional relief does not apply to the Business Rates Supplement levied by the Greater London Authority (GLA) for commercial properties with a rateable value exceeding £92,000.

The “threshold” set by the Government and applied for transitional relief purposes, depends upon the rateable value of the property as shown in the table below:

Table 1 – Business Rates Increase Limits

Transitional Relief Supplement

For properties where transitional relief or Supporting Small Business Relief is not applicable, for one year, a supplement of 1p will be charged to partially fund the transitional relief scheme.