2026 Transitional Relief - Small Business

General

The Small Business Transitional Relief scheme reduces the net increase in 2026-27 Non-Domestic Rates bills of qualifying properties.

Qualification

It is available to the following classes of properties which at 31 March 2026 received one of the following reliefs or reductions:

  • an award of Small Business Bonus Scheme relief (SBBS) relief;
  • an award of Mandatory or Discretionary Rural Relief;
  • an award of 2025 Hospitality relief;
  • an award of Small Business Transitional Relief.

In some instances the property may no longer be entitled to continue to receive this relief or reduction due to an increase in its Rateable Value in the 2026 Revaluation lifting it out of eligibility.

Exclusion

The following properties are excluded from this scheme:

  • properties which are not shown on the Valuation Roll at 31 March 2026;
  • properties which are not shown on the Valuation Roll at 1 April 2026;
  • properties which require a Short-term let licence to operate but does not hold one.

Impact of Small Business Transitional Relief 

For any property qualifying for Small Business Transitional Relief, the maximum increase in the amount of rates that will be payable in 2026-27 will be 25% of what otherwise would have been payable.

Application

Any ratepayer who wants to apply for Small Business Transitional Relief is required to complete an application form once they have received their 2026-27 non-domestic rates bill. The application form may be obtained by clicking here.

Worked Relief Examples

Qualification - Example One

Property Rateable Value at 31 March 2026 is £11,900
Gross rates bill for 2025-26 of £5,926.20 (£11,900 x 49.8p).  Net rates bill is £0 due to 100% SBBS award

Property Rateable Value at 1 April 2026 is £14,000
Gross rates bill for 2026-27 of £6,734 (£14,000 x 48.1p)
The Revaluation Transitional Relief limit to be applied is 12.5% (Small property, with a Rateable Value at 1 April 2026-27 up to £20,000)
The gross bill increase is £807.80 (which is a 13.63% increase)

Since the increase does not exceeds the applicable 15.0% limit, there is no entitlement to Revaluation Transitional relief.

The new 2026 Rateable Value means that entitlement to a Small Business Bonus Scheme award is reduced to 50% due to the taper applied to Rateable Values exceeding £12,000. This means that the net bill is reduced to £3,367 (£6,734 x 50% = SBBS: £3,367).

Since the ratepayer is no longer entitled to 100% SBBS, there is entitlement to Small Business Transitional Relief. This relief limits the amount payable to 25% of what would otherwise have been payable, the amount of this property’s 2026-27 rates bill is reduced to £841.75 (£3,367.00 x 25%).

Qualification - Example Two

Property Rateable Value at 31 March 2026 is £11,000. This is a licenced self-catering unit.
Gross rates bill for 2025-26 of £5,478 (£11,000 x 49.8p).  Net rates bill is £0 due to 100% SBBS award

Property Rateable Value at 1 April 2026 is £15,000
Gross rates bill for 2026-27 of £7,215 (£15,000 x 48.1p)
The Revaluation Transitional Relief limit to be applied is 12.5% (Small property, with a Rateable Value at 1 April 2026-27 up to £20,000)
The gross bill increase is £1,737 (which is a 31.71% increase)

Since the increase exceeds the applicable 15.0% limit, there is entitlement to Self-Catering Holiday Accommodation Transitional Relief.  This reduces the amount payable by £821.70 (£5,478 x 15%).

The new 2026 Rateable Value means that entitlement to a Small Business Bonus Scheme award is reduced to 25% due to the taper applied to Rateable Values exceeding £12,000. This property as a licensed self-catering unit is also entitled to 15% retail, hospitality and leisure relief.  These reliefs combined reduced the amount payable by 40% to £3,779.82 (£6,299.70 x 40% = £2,519.88).

Since the ratepayer is no longer entitled to 100% SBBS, there is entitlement to Small Business Transitional Relief. This relief limits the amount payable to 25% of what would otherwise have been payable, the amount of this property’s 2026-27 rates bill is reduced to £944.96 (£3,779.82 x 25%)

Qualification - Example Three

Property Rateable Value at 31 March 2026 is £49,000. This is a licenced mainland public house.
Gross rates bill for 2025-26 of £24,402(£49,000 x 49.8p).  Net rates bill is £14,461.20 as it benefited from 40% Hospitality Relief.

Property Rateable Value at 1 April 2026 is £56,500
Gross rates bill for 2026-27 of £30,227.50 (£56,500 x 53.5p)
The Revaluation Transitional Relief limit to be applied is 30% (Medium property, with a Rateable Value at 1 April 2026-27 up to £100,000)
The gross bill increase is £5.825.50 (which is a 23.9% increase)

Since the increase does not exceeds the applicable 30.0% limit, there is no entitlement to Revaluation Transitional relief.

The property is a licenced Public House with a Rateable Value of less than £100,00 there is an entitlement to 40% Retail Hospitality and Leisure relief.  This reliefs reduce the amount payable by 40% to £18,136.50 (£30,227.50 x 40% = £12,091.00).

Since the ratepayer is previously received 40% Hospitality Relief, there is an entitlement to Small Business Transitional Relief.  This reduces the increase in the amount payable in 2026-27 (£18,136.50 - £14,641.20 = £3,495.30) to 25% of what would otherwise be payable (£3,495.30 x 25% = £873.83 + £14,461.20).  Amended 2026-27 amount payable is £15,515.03.

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