2026 business rates revaluation relief
Relief available for businesses whose rateable values have increased or have lost other types of relief after the government revaluation in 2026.
Where rateable values have gone up after the government's 2026 revaluation, there are two types of relief to help businesses with this change to their business rates bills.
Transitional Relief
The transitional relief scheme puts a limit on increases to business rates bills because of the increase to rateable values in 2026. The scheme will run for three years.
Bills can only increase up to a maximum percentage depending on the business property's rateable value and will change each financial year up to 31 March 2029.
| Business rateable value | Maximum increase 1 April 2026 to 31 March 2027 | Maximum increase 1 April 2027 to 31 March 2028 | Maximum increase 1 April 2028 to 31 March 2029 |
|---|---|---|---|
| Small - up to £20,000 | 5% increase | 10% increase | 25% increase |
| Medium - £20,001 to £100,000 | 15% increase | 25% increase | 40% increase |
| Large - over £100,000 | 30% increase | 25% increase | 25% increase |
Supporting Small Business Relief
Supporting Small Business Relief is for any business that has lost some or all of these reliefs because of the 2026 revaluation.
- Small Business Rate Relief (SBRR)
- Rural Rate Relief (RRR)
- 40% Retail, Hospitality, Leisure (RHL) relief
- 2023 Supporting Small Business scheme (will be eligible for one year only)
You are not eligible if you:
- do not have any of these reliefs on 31 March 2026
- are a charity or community amateur sports club
Rates increase cap
The bill for 1 April 2026 to 31 March 2027 will not be increased by more than either:
- £800
- equivalent transitional relief limit
| Rateable value | 2026 rates increase limit |
|---|---|
| Up to £20,000 | £800 or 5% increase (whichever is more) |
| £20,001 to £100,000 | £800 or 15% increase (whichever is more) |
| Over £100,000 | £800 or 30% increase (whichever is more) |
If the bill for 1 April 2025 to 31 March 2026 was £0 because of the 100% small business rate relief, then the bill for 2026 will be £800.
The scheme will run for three years, each year capped at either £800 or equivalent transitional percentage more than the previous year, or until the bill reaches the amount the business would have paid without the relief.
A change in occupier after 1 April 2026 will not affect eligibility for Supporting Small Business Relief but eligibility will be lost if the property becomes:
- vacant for one or more days
- occupied by a charity
- occupied by a community amateur sports club
If the property is then reoccupied by a business that would otherwise qualify for Supporting Small Business Relief, the scheme will not apply.
More information on Supporting Small Business Relief on GOV.UK.