Business rates: Transitional Relief
Transitional Relief helps limit increases in your business rates bill after a revaluation.
Following the 2026 revaluation (from 1st April 2026), the Scottish Government has introduced schemes to phase in increases gradually instead of applying them all at once.
The schemes cover:
- A general award based on an increase in rateable value
- An award based on an increase in rateable value for self-catering holiday accommodation
- A cap on the charge increase for small businesses losing entitlement to certain relief awards
View business rates privacy notice (PDF 487KB).
General Revaluation Transitional Relief
You do not need to apply for this relief. It will be applied automatically to your Non-Domestic rates account if you are eligible.
This relief compares your rates bill on 31st March 2026, and your bill from 1st April 2026 after revaluation. It then limits how much your bill can increase each year.
Your bill is based on the rateable value of your property multiplied by the national rates poundage (the rate charged per £1 of value). Different poundage rates may apply depending on your property’s value. These are known as the Basic, Intermediate and Higher Property Rates.
The table below shows the maximum yearly increases in your business rates bill under this relief:
| Rateable value | 2026/27 | 2027/28 | 2028/29 |
| Small (up to £20,000) | 15% | 40.3% | 93.6% |
|
Medium (£20,001 to £100,000)
|
30% | 87.2% | 227.6% |
|
Large (over £100,000)
|
50% | 162.5% | 469.1% |
Self-catering Transitional Relief
This relief applies to self-catering holiday accommodation. To be eligible the property must:
- Be listed on the valuation roll on both 31 March 2026 and 1 April 2026
- Have a rateable value greater than £0 on both dates
The table below shows the maximum yearly increases in your business rates bill under this relief:
| Rateable value | 2026/27 | 2027/28 | 2028/29 |
| All | 15% | 32.3% | 52.1% |
Apply for Self-catering Transitional Relief
Self-catering Transitional Relief is capped under the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2021.
It can only be awarded as TCA de minimis subsidy, which means there are limits on how much support a business can receive. You can view a guide to awarding subsidies.
Small Business Transitional Relief
This relief limits how much your bill can increase if you lose certain other reliefs.
The maximum increases are:
- 25% in 2026/27
- 50% in 2027/28
- 75% in 2028/29
Properties that require a short-term let licence to operate but have not obtained one are not eligible.
You may be eligible if your property:
- Was entitled to one of the following on 31st March 2026, but is no longer entitled from 1st April 2026:
- Small Business Bonus Scheme Relief
- Mandatory or discretionary Rural Relief
- Hospitality Relief
- Small Business Transitional Relief
- Is listed on the valuation roll on both 31 March 2026 and 1 April 2026
- Has a rateable value greater than £0 on both 31 March 2026 and 1 April 2026