Revaluation 2023 and relief schemes

Transitional relief scheme

The government’s transitional relief scheme phases in changes to rate bills caused by the revaluation. Your bill will be capped each year until applying the cap would result in a higher increase than calculating your bill by multiplying your new rateable value by the multiplier.

The scheme applies only to the bill at the time of the revaluation. If there are any changes to the property after 1 April 2023, transitional relief won’t normally apply to those changes. Changes to your bill for other reasons, such as changes to small business rate relief, aren’t covered by the scheme.

How transitional relief is worked out

The percentage cap depends on whether your business is classified as small, medium or large.  Your bill will be capped each year until applying the cap would result in a higher increase than calculating your bill by multiplying your new rateable value by the multiplier.

All calculations for transition are based on the lower of the two government set multipliers. The supplement is the difference between the two multipliers, multiplied by the rateable value. For 2024/25 the standard multiplier is 0.546 and the small business rate multiplier is 0.499. The difference (0.546 - 0.499) is 0.34. If the 2023 rateable value is £70,000, then the supplement is £70,000 x 0.034 = £2380.00. The supplement will be added to the bill for properties with a rateable value greater than the small business threshold of £50,999, after the calculation of transitional relief has been completed.

Page last updated: 12 March 2024