Transition scheme 1 April 2023 to 31 March 2026
The transition scheme will operate over a period of 3 years from 1 April 2023 to 31 March 2026. The scheme has split properties into 3 groups, and the rates where increases apply will differ between each group:
- small; rateable value up to £20,000
- medium; rateable Value from £20,001 to £100,000
- large; rateable value from £100,001 upwards
Transitional Bill Increase Limits
The table below shows the limits by which a business rates bill can increase in a single year until your actual charge is reached. It shows the percentage of the increase, followed by the percentage of last year’s bill in brackets. For 2025 to 2026, the figures will be subject to inflation and confirmed in the run up to annual bills being issued.
| Year | Small | Medium | Large |
|---|---|---|---|
| 2023 to 2024 | 5.00% (105.00%) | 15.00% (115.00%) | 30.00% (130.00%) |
| 2024 to 2025 | 10.00% (110.00%) | 25.00% (125.00%) | 40.00% (140.00%) |
| 2025 to 2026 | 25.00% | 40.00% | 55.00% |
These percentages are independent of one another. For a medium property that is still in transition in 2024 to 2025, the 25% rise is equal to 125% of your 2023 to 2024 bill. If applicable, transition in 2025 to 2026 for that property would equal 140% of the 2024 to 2025 bill, and so on.
How Transitional Relief is calculated
Transitional Relief is based on comparing your rateable value on 31 March 2023 against the rateable value on 1 April 2023. The calculation always uses the Small Business Multiplier. Any adjustment for the Small Business Supplement is added afterwards.