Business rates: Transitional Relief

Business rates transitional relief is a government scheme that limits how much a business's rates bill can change each year following a property revaluation.

Transitional Relief April 2026 to March 2028

This transitional relief scheme will limit increases in business rates bills, as a result of the revaluation on 1 April 2026.

The transitional relief is fully funded by the Welsh Government and defined in the Non-Domestic Rating Regulations 2025. The Regulations prescribe rules to be used to calculate the chargeable amount for eligible properties with increased NDR liability of more than £300, as a result of the revaluation. The relief is available to ratepayers on the local list and on the central list.

The Welsh Government is providing £116m over two years to fund this transitional relief, supporting all areas of the tax-base through a consistent and straightforward scheme.

Eligible ratepayers will be entitled to a phased reduction over a two-year period as follows:

year 1: 33% of their additional liability in the first year (2026-27)
year 2: 66% in the second year (2027-28)
year 3: full liability in the third year (2028-29)

A property (hereditament) will qualify for transitional relief if all of the following conditions are met:

It was included on either the local rating list or the central rating list on 31 March 2026, the day before the new lists take effect on 1 April 2026.
Its business rates liability increases by more than £300 when comparing the new chargeable amount (NCA) with the previous bill (BL).
The same ratepayer is responsible for the property on the relevant day and on 31 March 2026. If the ratepayer changes, the relief will end.
The property was occupied on 31 March 2026 by that same ratepayer.
The property is not receiving a section 44A apportionment for partial occupation under the Local Government Finance Act 1988.

Find out more about the Non-Domestic Rates – Transitional Rates Relief for the 2023 Revaluation (external website).

Transitional Relief April 2023 to March 2026

Welsh Government has introduced a scheme to help protect small businesses from the impact of the 2023 revaluation, limiting the increase in the amounts payable. The scheme is designed as follows.

Any increase in the rates payable up to £300 will receive no transitional relief
The transitional relief is linked to the account as at 1 April 2023 so any change in liability e.g. a change in occupiers will cease the relief from the date of change

Eligible ratepayers will be entitled to a phased reduction over a two-year period as follows:

year 1: 67% reduction in 2023-24, and;
year 2: 34% reduction in 2024-25
year 3: No reduction in 2025-26

The qualification criteria is as follows:

the ratepayer must have had an increase in the annual bill greater than £300
the Property must be occupied on 31 March 2023 and 1 April 2023
no Transitional Relief is payable on empty properties or partially occupied properties
any changes in liability such as a property becoming empty or change of occupier will cease the relief

Find out more about the Non-Domestic Rates – Transitional Rates Relief for the 2023 Revaluation (external website).

How to apply for Transitional Relief

There is no need to apply for this relief as the New Year amount will be automatically calculated. However if you believe you should have qualified but have not received any relief and want us to review your case please contact us at: businessrates@denbighshire.gov.uk