Transitional relief will phase in the effect of significant increases in liability, resulting from the revaluation of non-domestic properties. The next revaluation will come into effect on 1 April 2026 when some ratepayers will see reductions or no change in their bill and others will see increases.
From 1 April 2026, Business Rates bills in England will be updated to reflect changes in property values since the last revaluation in 2023. This will introduce a new three year Transitional Relief scheme. Your business rates will change no more than the set percentage from one year to the next:
Further information about transitional arrangements may be obtained from the local authority or at www.gov.uk/business-rates-relief
The Valuation Officer may issue a transitional certificate which is used for the calculation of transition for your property.
Should you disagree with the value of the certificate, please contact the Valuation Office Agency (VOA).
If you are eligible for transitional relief, your bill will be adjusted automatically, and the transitional arrangements calculation will be provided on your bill.
The NCA is the property's new rateable value multiplied by the relevant multiplier as at 1 April 2026.
The BL is the property's previous rateable value multiplied by the relevant multiplier as at 31 March 2026. In subsequent years the base liability is the chargeable amount shown in the transitional calculation on your demand for the previous year.
The maximum percentage change allowed under the scheme (X)
The maximum percentage change allowed in each year depends on whether the property counts as small, medium or large. The table below for the value of X shows the different limits.
Value of X – caps on increases (if you'll be paying more)
The maximum percentage change allowed in each year depends on whether the property counts as small, medium or large. The table below for the value of X shows the different limits.
Value of X - limit on increases (if you'll be paying more)
| 1 April to 31 March | Small: Rateable value up to £20,000 | Medium: Rateable value £20,001 - £100,000 | Large: Rateable value £100,001 and over |
| 2026 to 2027 | 105% | 115% | 130% |
| 2027 to 2028 | 110% | 125% | 125% |
| 2028 to 2029 | 125% | 140% | 125% |
The figure is converted into a decimal for the transitional calculation - so a limit of 105% would be a decimal of 1.05, showing a maximum allowed increase of 5%.
Q is an inflation-linked figure set by central government.
The Appropriate Fraction is Q times X
The calculation for the chargeable amount is:
(BL x AF)
The transition figure is then the difference between this actual chargeable amount and the Notional Chargeable Amount.
Further information about transitional arrangements may be obtained from Wirral Council’s website at www.wirral.gov.uk or at www.gov.uk/business-rates-relief
To help pay for the cost of providing Transitional Relief nationally, the UK government has introduced a 1p Transitional Relief Supplement (TRS) towards funding the Transitional Relief Scheme. This will apply for the financial year 2026/2027, commencing from 1 April 2026.
The supplement only applies to ratepayers who do not receive Transitional Relief or Supporting Small Business Relief. If you receive either of those reliefs, you will not pay the supplement.
The 1p supplement is calculated on the Rateable Value of your property as at 1st April 2026 and will be provided on all Business Rate bills. If your bill has transitional relief, this amount will be offset by the transitional relief you receive.