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Help paying your business rates
Transitional relief scheme
The government’s transitional relief scheme phases in changes to rate bills caused by the 2026 revaluation where there has been an increase in your rateable value. The scheme is designed to limit increases for your annual rates payable.
The scheme applies only to the bill at the time of the revaluation. If there are any changes to the property after 1 April 2026, transitional relief won’t normally apply to those changes.
Changes to your bill for other reasons, such as a loss of other reliefs aren’t covered by the scheme.
How transitional relief is worked out
The percentage cap depends on whether your business is classified as small, medium or large. These percentage increases are applied before inflation is added, for example, if your rateable value is £25,000 then the increase in your bill for 2026-27 when compared to 2025-26 would be capped at 5%.
If your bill is increasing from 1 April 2026 to 31 March 2029
| Rateable value | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 |
|---|---|---|---|
| Up to £20,000 (£28,000 in London) | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 (£28,001 in London) to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 25% plus inflation | 25% plus inflation |
Your bill will be capped each year until applying the cap would result in a higher decrease than calculating your bill by multiplying your new rateable value by the relevant multiplier.
Transitional Surcharge
With effect from 1 April 2026 all Businesses that do not receive Transitional Relief will be subject to the Transitional Surcharge.
The surcharge is 1% of your rateable value, if your rateable value is £10,000 the surcharge is £10,000 X £0.01 = £100 for the year.