Transitional Rate Relief

Transitional relief limits how much your business rates bill can change each year as a result of a business rates revaluation. This means changes to your bill are phased in gradually if you’re eligible.

The latest revaluation took place on 1 April 2023 with a new transitional relief scheme announced by the Government. This scheme will support ratepayers who have seen a large increase to their bill following the revaluation.

The relief does not apply to increases due to changes to the property after 1 April 2023.

You stop getting transitional relief when your bill reaches the full amount set by a revaluation.

There is no need to apply for this relief, it will be awarded automatically to your bill. 

The limits in place for the revaluation 2023 are as follows:

Rateable Value 2023/24 2024/25 2025/26
Small RV up to £20,000 5% 10% plus inflation 25% plus inflation
Medium RV £20,001 to £100,000 15% 25% plus inflation 40% plus inflation
Large RV over £100,000 30% 40% plus inflation 55% plus inflation

For the 2023 revaluation, properties that have had the rateable value reduction will benefit from the reduction straight away, rather than having the reduction phased in gradually.