Business rates transitional relief

Transitional relief limits how much your business rates bill can change each year as a result of a business rates revaluation.

You’ll receive transitional relief if your business rates go up or down by more than a certain amount, so the changes to your bill are phased in gradually.

How much your bill can change by

The business rates year runs from 1 April to 31 March the following year. How much your bill can change by from one year to the next depends on:

  • your property’s rateable value

  • whether your bill is increasing or decreasing as a result of revaluation

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

If your bill is increasing from 1 April 2026 to 31 March 2029

If your business rates bill is increasing from 1 April 2026 to 31 March 2029, your business rates will change by no more than the percentage caps listed in the following table from one year to the next.

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

How to apply

If you're eligible for transitional relief, your bill be adjusted automatically.