Transitional and supporting small business
Transitional Relief
Transitional relief limits how much your bill will go up as a result of the revaluation. This means if your business is eligible for transitional relief, the increases to the business rates bill will be phased in gradually.
The below table shows the percentage increases applied to phase in your bill over the next three years:
|
Rateable Value |
2023-2024 |
2024-2025 |
2025-2026 |
|---|---|---|---|
|
Up to £28,000 |
5% |
10% plus inflation |
25% plus inflation |
|
£28,000 to £100,000 |
15% |
25% plus inflation |
40% plus inflation |
|
Over £100,000 |
30% |
40% plus inflation |
55% plus inflation |
Supporting Small Businesses Rate Relief
The Government is providing funding to local authorities so that they can provide relief to those ratepayers facing large increases in business rates charge as a result of the loss of Small Business Rates Relief due to the revaluation effective from 1 April 2023. This relief is in addition to the Transitional Relief arrangements introduced 1 April 2023.
Entitlement to Supporting Small Business Rate Relief is automatically calculated and granted to eligible ratepayers.
Please note that this relief will cease at the end of the 2025/2026 financial year.
Supporting Small business relief limits the increase per year in the bills of these ratepayers to a cash value of £600 per year. The starting amount of your 2022/23 rate bill for this purpose is worked out based on a full year of occupied rates using your circumstances on 31 March 2023, not including discretionary reliefs such as Retail Discount and discretionary top-up Rural Rate Relief.
Ratepayers who qualify for SSB relief in 2023/24 due to receiving the Extension of Transitional Relief and Supporting Small Business Relief in 2022/23 can receive SSB relief for 2023/24 only. All other ratepayers can receive SSB relief from 2023/24 until 2025/26, provided they meet the criteria.
Eligibility for SSB relief is not affected by a change in ratepayer. However, if the property becomes unoccupied, it will not be eligible for SSB relief when it is re-occupied.