Reliefs

Transitional Relief 2026-2029

If your bill increases because of the revaluation, Transitional Relief will limit the size of annual increases for up to three years.

Typical upward caps include (examples from national guidance):

• Small properties (up to £20,000 RV): capped at 5%, 10% + inflation, then 25% + inflation per year.  
• Medium (£20,001–£100,000): 15%, 25% + inflation, then 40% + inflation.  
• Large (over £100,000): 30%, 25% + inflation, 25% + inflation.  

A 1p supplement is added for one year (2026/27) for those not receiving Transitional Relief or SSB Support, to help fund the scheme. 

What is the 1p Supplement?

From 1 April 2026, a temporary 1p supplement (equivalent to 1p in the pound on the multiplier) will be added to the business rates bills of ratepayers who do not receive Transitional Relief or Supporting Small Business (SSB) Relief. This applies for one year only, covering 2026/27.

For these ratepayers, the standard multiplier that applies to their property is increased by 1p purely for this single financial year.

Why does this supplement exist?

The Government has introduced a new Transitional Relief scheme for the 2026 revaluation, which is significantly more generous than previous cycles. To fund the cost of this enhanced support, the Government is applying the 1p supplement to ratepayers not benefiting from the scheme.

The supplement is a funding mechanism.

• Transitional Relief caps large bill increases caused by the 2026 revaluation so that ratepayers do not face the full rise immediately.  
• These caps (5%, 15%, 30% etc., depending on rateable value) reduce the amount those ratepayers would otherwise be required to pay.  
• The result is a significant shortfall in business rates income, which the Government must balance. 

Who pays the supplement? 

The supplement applies only to ratepayers who are not receiving:

• Transitional Relief, or
• Supporting Small Business Relief (SSB)

because their bills are not being capped or subsidised. These ratepayers contribute towards the overall cost of delivering the relief to others.

Why 1p? 

The Government chose a small, temporary uplift of 1p in the multiplier because it spreads the funding requirement across a wider base without causing sharp increases for any group.

This approach has been used in earlier revaluation cycles on a smaller scale, but the scale of the 2026 revaluation means a clearer and more transparent supplement was introduced for 2026/27.

How the 1p supplement works in practice

Here is an example:

If your property uses the Standard Multiplier (NonRHL) of 48.0p, and you do not qualify for Transitional Relief or SSB Relief:

• Normal multiplier: 48.0p
• 1p supplement added: +1.0p
• Total multiplier for 2026/27: 49.0p

This adjusted multiplier is used for one year only and then removed in 2027/28.

Who does not pay the 1p supplement?

You will not pay the supplement if you receive either:

• Transitional Relief, because your bill is already being capped to protect you from sudden increases or
• Supporting Small Business Relief, because your bill is capped at £800 per year (or the transitional percentage cap).

For both groups, it would defeat the purpose of the scheme to add extra charges, so the Government exempts them from the supplement.

Why this is fair and necessary

The Government describes the 1p supplement as a way to ensure:

Fairness

Businesses whose bills do not increase excessively are asked to contribute a small amount to support those facing the steepest rises.

Stability of the Business Rates System

Transitional Relief reduces income in the early years of a new rating list. The supplement ensures councils receive the correct amount of funding from year one.

Cost neutrality

Business rates policy is designed to be broadly income neutral across revaluation cycles. The supplement helps maintain this balance so that reliefs do not create funding gaps.

In summary:

• The 1p supplement applies only during 2026/27.
• It is added to the relevant multiplier for ratepayers not receiving Transitional or SSB Relief.
• It is used to part-fund the generous relief provided to businesses whose bills would otherwise rise sharply.
• It ensures the business rates system remains balanced and councils receive consistent income.

Transitional Relief is automatically applied - you do not need to apply.

100% relief for electric vehicle charging infrastructure

From 1 April 2026, eligible properties such as:

• Electric vehicle charging points, and
• Electric vehicle–only forecourts

will continue to receive 100% business rates relief. This continues the Government's support for expanding EV charging networks and applies automatically where eligibility criteria are met.

Small Business Rate Relief

Supporting Small Businesses (SSB) Scheme – from April 2026 

The 2026 Supporting Small Business (SSB) scheme protects ratepayers who lose Small Business Rate Relief, Rural Rate Relief, or RHL Relief because of the 2026 revaluation.

Key features (Englandwide):

• Annual increases will be capped at £800 per year, or the relevant transitional percentage cap (whichever is greater).
• Applies from 2026/27 to 2028/29.
• Automatically applied if you qualify.
• Does not apply to unoccupied properties, charities or CASCs.
• Businesses previously receiving SSB from the 2023 scheme continue until 31 March 2027 if eligible.

Mandatory Relief

Your organisation must be a charity or trustees for a charity or a registered community amateur sports club, and

• the property must be wholly or mainly used for charitable purposes or for the purposes of the club or other registered clubs
• charity shops must be wholly or mainly used for the sale of goods donated to the charity and the proceeds (after deduction of expenses) must be applied for the purposes of the charity

If the property is unoccupied you may still qualify for relief so long as it appears that when next used the property will be wholly or mainly used for charitable purpose.  

Note, if we cannot establish regular use of the premises or expected regular use, or if the use made is very erratic, we may decide relief is not appropriate.

Discretionary Relief

The Council will also consider granting Discretionary Relief of:

• An additional 20% for a ratepayer already entitled to Mandatory Relief (for charitable organisations and registered Community Amateur Sports Clubs): or
• Up to 100% reduction to certain other non-profit-making organisations which do not qualify for Mandatory Relief but meet the following requirements:

(a) Occupy a property where all or part is occupied for the purposes of one or more institutions or other organisations which are not established or conducted for profit and their main objects are charitable or are otherwise philanthropic or religious or concerned with education, social welfare, science, literature or the fine arts; or

(b) a property which is wholly or mainly used for purposes of recreation, and all or part of it is occupied for the purpose of a club, society or other organisation not established or conducted for profit.

Charity relief, relief for registered community amateur sport clubs (CASCs) and discretionary relief

Charities and certain non-profit making organisations are entitled to a reduction on Non-Domestic Rates for properties occupied for charitable purposes. There are two types of relief, Mandatory and Discretionary. Registered Community Amateur Sports Clubs (CASCs) are also entitled to relief from rates on any non-domestic property wholly or mainly used for the purposes of that club or other such registered club

Charities Important Information:

The Charity Commission offers the following advice to charities in relation to entering into any tenancy agreements to occupy empty properties; the commission advises that the charity trustees must:

• Be assured that the tenancy agreement is for the exclusive benefit of the charity, will further the charity's purposes and is in its best interests
• Consider the potential liability of the charity to pay outstanding rates if the local authority disputes use of the premises and refuses rates relief
• Very carefully safeguard the charity's independence and ensure the charity is not being abused for the benefit of a commercial company
• Where appropriate, take suitable professional advice, including legal advice, before entering into a tenancy agreement.
• Ensure the property is genuinely required and is fit for purpose

The Charity Commission has been made aware of a number of charities who have entered tenancy agreements and is examining whether the trustees of the charities involved have properly discharged their trustee duties when making the decisions to occupy those properties to further their charitable purposes, and whether any benefit to the landlord is incidental to that.

For more information about any relief, contact our business rates team on 01329 824651 or by email to businessrates@fareham.gov.uk.

Unoccupied property relief:

You will not pay business rates in the first three months that a property is empty or the first six months in the case of certain industrial properties. After this time, unless your property has a Rateable Value of less than £2,900, you must pay rates in full.  

Other exemptions may apply.

In most cases, the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs.

Partly occupied property relief:

You are liable for the full non-domestic rate if your property is wholly occupied or partly occupied. Where a property is partly occupied for a short time only, we have discretion to award relief for the unoccupied part.

Subsidy 

A subsidy is where a public authority such as a Local Authority provides support to an enterprise that gives them an economic advantage, meaning equivalent support could not have been obtained on commercial terms. This could include any Discretionary Rate Relief.

On 4 January 2023, the UK's new subsidy control regime came into force, implementing a new subsidy regulation framework designed for the post-Brexit era. Underpinned by the Subsidy Control Act 2022 , and government guidance, the new regime aims to grant public authorities the power to design and award subsidies in an agile way while complying with the UK's international commitments on subsidy control.

Further information is available on the Government's website .