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Transitional relief | Business rates reductions | Birmingham City Council

Transitional relief

Transitional relief limits how much your bill can change each year because of the business rates revaluation.

Normally, you will get transitional relief if your rates go up by more than a certain amount. This is so that changes to your bills happen gradually.

There is a new transitional relief (TR) scheme with the move to 5 multipliers for 2026 / 27. As a result, TR will now move onto a multiplier “inclusive” model under which all the multipliers will be included within the TR calculation.

The transitional relief caps will be as follows for properties with a rateable value of:

 

2026 to 2027

2027 to 2028

2028 to 2029

Up to £20,000 in 2026 to 2027

5%

10% (plus inflation)

25% (plus inflation)

£20,001 to £100,000

15%

25% (plus inflation)

40% (plus inflation)

Over £100,000

30%

25% (plus inflation)

25% (plus inflation)

You can find out more about transitional relief on the GOV.UK website.

How to apply

You do not need to apply. Transitional relief is calculated automatically and will appear on your bill.


Page last updated: 6 March 2026

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