Transitional arrangements

If there has been a large rise or drop in the rateable value of your property since 1 April 2017, it will probably be affected by transitional arrangements.

Different transitional arrangements will apply, depending on whether your bill has increased or decreased and whether your business is classed as small, medium or large.

What is defined as small, medium or large business?

A small business is defined as a property with a rateable value of up to £28,000. Medium properties have a rateable value of £28,001 up to £100,000. Large properties have rateable values of £100,001 and over. 

The transitional relief scheme

The transitional relief scheme operates over a 5 year period and limits how much your bill can change each year as a result of revaluation.

This means changes to your bill are phased in gradually, if your business is eligible.

Table 1 shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply:

Table 1: If your bill is increasing
Year Small business Medium business Large business
2017-18 5% 12.5% 42%
2018-19 7.5% 17.5% 32%
2019-20 10% 20% 49%
2020-21 15% 25% 16%
2021-22 15% 25% 6%

Slightly different arrangements apply for the proposed limits by which a rates bill can decrease in a single year, shown in Table 2 below.

Table 2: If your bill is decreasing
Year Small business Medium business Large business
2017-18 20% 10% 4.1%
2018-19 30% 15% 4.6%
2019-20 35% 20% 5.9%
2020-21 55% 25% 5.8%
2021-22 55% 25% 4.8%

If the transitional relief scheme applies to your bill, it will automatically be shown.

Where transitional relief does not apply

For properties where transitional relief does not apply, the annual rate bill will increase in line with inflation until the next revaluation. 

Further information

Find and correct your business rates valuation

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