If there has been a large rise in the rateable value of your property since 1 April 2023, 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 three-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.
This table shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply
| Rateable value | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
|---|---|---|---|
| Up to £20,000 (£28,000 in London) | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 (£28,001 in London) to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 40%plus inflation | 55% plus inflation |
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.