Transitional relief
As a result of the revaluation of all Non Domestic properties from 1 April 2026, together with other legislation changes affecting rates reliefs available, ratepayers need to be aware that in many instances they may see an increase in their rates charges. This may be due to a change in the rateable value from 1 April 2026, a reduction or loss of small business bonus scheme relief or rural rates relief, Hospitality Relief or Small Business Bonus Transitional Relief
The different types of transitional relief scheme are summarised below.
General Revaluation Transitional Relief
A General Revaluation Transitional Relief is available for all property types, capping gross bill increases at a specified percentage increase, dependent on the rateable value on 1 April 2026.
Properties with rateable value on 1 April 2026 up to and including £20,000
| 2026-27 | 2027-28 | 2028-29 |
Annual cap | 15% | 22% | 38% |
Cumulative cap | 15% | 40.3% | 93.6% |
Cumulative multiplier | 1.150 | 1.403 | 1.936 |
Properties with rateable value on 1 April 2026 from £20,001 and up to and including £100,000
| 2026-27 | 2027-28 | 2028-29 |
Annual cap | 30% | 44% | 75% |
Cumulative cap | 30% | 87.2% | 227.6% |
Cumulative multiplier | 1.300 | 1.872 | 3.276 |
Properties with rateable value on 1 April 2026 in excess of £100,000
| 2026-27 | 2027-28 | 2028-29 |
Annual cap | 50% | 75% | 113% |
Cumulative cap | 50% | 162.5% | 459.1% |
Cumulative multiplier | 1.500 | 2.625 | 5.591 |
Eligible self-catering holiday accommodation
| 2026-27 | 2027-28 | 2028-29 |
Annual cap | 15% | 15% | 15% |
Cumulative cap | 15% | 32.3% | 52.1% |
Cumulative multiplier | 1.150 | 1.323 | 1.521 |
In order to be eligible for this relief, the property had to be shown in an entry on the valuation roll on both 31 March 2026 and 1 April 2026. Properties with a nil RV on 1 April 2026, or which had a nil RV on 31 March 2026 are not eligible. Eligibility for the relief also ceases if there is a merger, split or reorganisation of the valuation roll entry for the property occurring after 1 April 2026.
If the property is shown in a split or reorganised entry taking effect on 1 April 2026 a reduction is applied to the gross bill and then uplifted by the relevant factor noted in the table above to calculate the transitional limit. The reduction to be applied is:
- 1.2 for properties with a rateable value up to and including £20,000
- 1.25 for properties with a rateable value from £20,001 up to and including £100,000
- 1.4 for properties with a rateable over £100,000
To be eligible for Self-catering Revaluation Transitional Relief, properties must hold a short-term let licence in accordance with article 4 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022.
A property can continue to be eligible for this relief upon a change of ratepayer.
An application is not required for this relief and it may be awarded automatically, with the exception of Self-catering Revaluation Transitional Relief.
Small Business Transitional Relief
This relief reduces the net bill increase in 2026-27 to 25% of what it otherwise would have been taking into account other reliefs, including the General Revaluation Transitional Relief, an application form must be completed for this relief.
The relief is available for properties:
- Entitled to SBBS relief on 31 March 2026
- Entitled to mandatory or discretionary Rural Relief on 31 March 2026 and no longer entitled on 1 April 2026 due to their rateable value increasing at the 2026 revaluation beyond the qualifying threshold(s) set out in the Non-Domestic Rating (Rural Areas and Rateable Value Limits) (Scotland) Order 2005, as amended
- Entitled to hospitality relief on 31 March 2026; and
- Entitled to Small Business Transitional Relief on 31 March 2026.
In 2027-28 and 2028-29 it will reduce the net bill increases to 50% and 75% respectively of what they would otherwise have been.
Properties that require a short-term let licence to operate but have not obtained one are not eligible for Small Business Transitional Relief.
To be eligible for this relief, the property requires to have been shown in an entry on the valuation roll on both 31 March 2026 and 1 April 2026. Properties with a nil RV on 1 April 2026 or which had a nil RV on 31 March 2026 are not eligible. Eligibility ceases if there is a merger, split or reorganisation of the valuation roll entry for the property occurring after 1 April 2026.
A property ceases to be eligible for this relief upon a change of ratepayer.
Any increases in RV after revaluation are not subject to the cap, and any decrease in rates caused by a decrease in RV after revaluation would also be taken into proportionate account.
You can download and complete the application form (Word doc, 44 KB).
