Transitional Relief Scheme for 2026/27
To support ratepayers facing large bill increases upon revaluation, the government is introducing a redesigned Transitional Relief Scheme.
The Transitional Relief caps will be as follows for properties with a rateable value of:
- Up to £20,000 (£28,000 in London): in 2026-27 - 5%, in 2027-28 - 10% (plus inflation), in 2028-29 - 25% (plus inflation).
- £20,001 (£28,001 in London) to £100,000: in 2026-27 - 15%, in 2027-28 - 25% (plus inflation), in 2028-29 - 40% (plus inflation).
- Over £100,000: in 2026-27 - 30%, in 2027-28 - 25% (plus inflation), in 2028-29 - 25% (plus inflation).
Business Rates Transitional Relief Supplement
The government is introducing a 1p supplement to the relevant tax rate for ratepayers who do not receive Transitional Relief or the Supporting Small Business Scheme to partially fund Transitional Relief.
This will apply for one year from 1 April 2026.
