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.
