The Non‑Domestic Rating (Chargeable Amounts) (England) Regulations 2026 set the rules for transitional relief at the 2026 revaluation. The instrument was approved by both Houses in late January and applies in England from 1 April 2026 to 31 March 2029, phasing bill increases over three financial years. (statutoryinstruments.parliament.uk)
At a high level the Regulations replace the normal charge calculation with a capped alternative where a property meets the tests in regulation 11. They apply to “defined hereditaments” that were on the rating list on 31 March 2026 and remain in the list thereafter, including properties on the central list for designated network undertakings. The provisions extend to complex cases such as mergers, splits and central list apportionments, so large multi‑site operators and regulated utilities should read them alongside the Valuation Office Agency (VOA) certifications framework in Part 4.
Transitional relief is triggered where the notional chargeable amount for the year exceeds both the base liability and the base liability multiplied by the appropriate fraction. In practice, this is the statutory test that ensures only the revaluation‑driven increase is capped. The capped amount becomes the ratepayer’s substituted chargeable amount for each day in the relevant year, subject to mandatory reliefs being applied afterwards.
The Government confirmed percentage caps by rateable value band. For 2026‑27 the caps are 5 percent for small properties, 15 percent for medium properties and 30 percent for large properties, with the 2027‑28 and 2028‑29 caps rising with inflation. Public guidance from the Local Government Association sets out the full three‑year schedule: up to £20,000 RV (£28,000 in London) 5%, 10%+inflation, 25%+inflation; £20,001–£100,000 RV 15%, 25%+inflation, 40%+inflation; over £100,000 RV 30%, 25%+inflation, 25%+inflation. (hansard.parliament.uk)
A one‑penny supplement applies only in 2026‑27 to those not receiving transitional relief or Supporting Small Business Relief. Ministers told Parliament this “transitional relief supplement” helps fund the scheme and would add around 2–3 percent to affected bills in that year. (publications.parliament.uk)
Mandatory reliefs then adjust the capped bill. Where charitable relief applies, the daily amount is divided by five to reflect the 80 percent reduction; where small business rate relief applies, the amount is divided by the statutory SBRR factor; and where unoccupied property rules apply, the amount is divided by the prescribed unoccupied factor. These adjustments are taken after the transitional calculation, as set out in regulation 12.
The 2026 Supporting Small Business Relief (SSBR) runs alongside transitional relief via section 47 awards. It caps bill increases for eligible ratepayers at the higher of £800 per year or the relevant transitional cap. Government guidance confirms how SSBR references and adapts the transitional relief formulas in these Regulations, including how to set the base liability and how VOA certificates under regulations 18 and 19 alter starting values. (gov.uk)
Special‑case multipliers are addressed directly. Where a “special authority” sets a different multiplier, the Regulations apply an adjustment so the intended cap still bites correctly. Separately, Ministers reminded MPs that local supplements such as the London business rate supplement for Crossrail sit on top, so actual cash bills may move by more than the headline transitional cap allows. (hansard.parliament.uk)
If the rateable value for 1 April 2026 differs from what it would have been had 31 March 2026 circumstances continued, the VOA must certify an alternative value for that day. The certified figure is then used in the transitional formulas for the notional chargeable amount and the appropriate fraction, ensuring the cap is built off the correct Day‑1 position. Later corrections to 31 March 2026 can also be certified, with the Regulations setting out how and from when the certified values apply. Government SSBR guidance cross‑refers to this certification regime for consistency. (gov.uk)
Where a property’s rateable value changes after 1 April 2026, regulation 13 modifies the year’s cap by substituting the new “A” value into the daily formula. The approach is symmetric for increases and reductions and preserves the intended phasing of any revaluation‑driven rise while reflecting genuine valuation changes during the year.
Partly‑occupied hereditaments assessed under section 44A are accommodated. The chargeable amount found under transitional relief is multiplied by the ratio of the occupied proportion to the whole, using the statutory “A2/A1” adjustment, so that capping and partial‑occupation relief interact transparently.
The Schedule handles splits and mergers. Where a new hereditament is created on or after 1 April 2026, the rules reconstruct an equivalent “old” bill and rateable value to anchor the cap, then apply transitional formulas to the new unit. Worked provisions cover single‑source and multi‑source mergers and allow for subsequent changes in the new hereditament’s rateable value within the year.
For designated persons on the central list, regulation 21 requires the VOA to certify pseudo stand‑alone rateable values where several assets of the same description sit under one undertaking. Transitional calculations for central list ratepayers are then built on those certificates so the cap operates as if each asset stood alone, while still producing a single liability for the designated person.
The revaluation underpinning these Regulations uses an antecedent valuation date of 1 April 2024 and takes legal effect on 1 April 2026. The VOA has published draft‑list statistics and background explaining the methodology and definitions that feed into the 2026 rating lists. (gov.uk)
Certification and appeal rights are formalised. The VOA must issue certificates “as soon as practicable” when circumstances call for one and notify both the billing authority and the ratepayer. An interested person who disagrees with a certificate may appeal to the Valuation Tribunal for England; the Regulations set a six‑month time limit from the certificate date, and the 2009 VTE Procedure Regulations govern how appeals are lodged and determined. (legislation.gov.uk)
Context matters for 2026‑27. Alongside transitional relief, new statutory multipliers for retail, hospitality and leisure, a prescribed high‑value multiplier and a new prescription framework take effect from 1 April 2026 under separate Treasury regulations. These sit alongside the transitional regime and will influence gross bills before reliefs are applied. (statutoryinstruments.parliament.uk)