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Transitional Rate Relief 2017

The Valuation Office Agency (VOA) reassesses and updates the rateable value of all non-domestic (business) properties usually every 5 years. This process is called a Revaluation.

Transitional Arrangements

The latest revaluation came into effect on 1 April 2017 and all properties will have their rateable value assessed on the valuation date of 1 April 2015.

As a result of the 2017 revaluation of non-domestic properties, some ratepayers are subject to substantial increases in amounts payable, and others, substantial reductions. Transitional arrangements help to phase in the effects of these changes by set limits restricting increases and reductions in bills after a revaluation.  Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value x the multiplier).

The scheme only applies to the bill based on a property at the time of the revaluation.  If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of the bill that applies to any increase in rateable value due to those changes.

Further information about transitional arrangements.

Any transitional adjustments affecting what a ratepayer pays are shown on the front of the rates bill.

The basis for calculating transitional arrangements in any year is the amount of business rates payable on a property as at 31 March of the previous financial year, after taking into account the increase in the retail prices index.

The limit by which the business rates for a property may increase or decrease from one year to the next depends on which of the following categories the property falls into:

  • Large Property - rateable value of more than £100,000
  • Medium Property- rateable value of more than £20,000 and less than or equal to £100,000
  • Small Property - rateable value less than or equal to £20,000

The limits set for increases in business rates are as follows:

Year

LARGE
More than £100,000

MEDIUM
More than £20,000 &
Less than or = to £100,000

SMALL
Less than or = to
£20,000

2017/1842%12.5%5%
2018/1932%17.5%7.5%
2019/2049%20%10%
2020/2116%25%15%
2021/226%25%15%

The limits set for decreases in business rates are as follows:

Year

LARGE
More than £100,000

MEDIUM
More than £20,000 &
Less than or = to £100,000

SMALL
Less than or = to
£20,000

2017/184.1%10%20%
2018/194.6%15%30%
2019/205.9%20%35%
2020/215.8%25%55%
2021/224.8%25%55%

For further information about transitional arrangements please contact us.