Transitional Relief: How Rate Changes Phase In

When a revaluation changes your rateable value, transitional relief limits how fast the bill can move. It softens the impact of a big increase.

What it does

Transitional relief caps the year-on-year change in a business rates bill after a revaluation, so a large increase is phased in over several years rather than hitting in full at once. The scheme for the 2026 list was confirmed as part of the surrounding rates package.

How it works

If your rateable value rose sharply at the 2026 revaluation, the increase in your bill is limited each year by the relevant cap, and you move towards the full liability over time. The caps depend on the size of the property and the scheme rules.

The interaction with the supplement

Note that for 2026/27, ratepayers who do not receive transitional relief or Supporting Small Business relief have a 1p supplement added to their multiplier. So transitional relief and the supplement are linked parts of the same package.

Check your bill

Transitional relief is normally applied automatically by the billing authority, but it is worth checking that your bill reflects it correctly if your rateable value rose. See the 2026 revaluation and multipliers.

What does transitional relief do?

It caps the year-on-year change in a business rates bill after a revaluation, phasing in a large increase over several years.

Is transitional relief applied automatically?

It is normally applied by the billing authority, but check that your bill reflects it if your rateable value rose sharply.