If the rateable value of your property changes significantly as a result of revaluation your rates will change gradually. This is called 'transitional relief'.
If you qualify for transitional relief we will include this automatically when working out what business rates you should pay.
There are limits on how much your rates can increase or decrease.
Transitional Relief adjustments phase in the effect of significant changes in liability arising from the revaluation of all non-domestic property, conducted by the Valuation Office Agency. The latest revaluation came into effect 1 April 2017. Where appropriate, these arrangements will operate until March 2022, which is when all non-domestic property will be revalued again.
Transitional arrangements help to phase in the effects of the changes in rateable value for ratepayers facing increased bills. To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. 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.
If you are affected by transitional adjustments, the details are shown on the front of your rates bill.
Special rules also deal with changes in rateable values and the merger or splitting of existing properties.
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 limit set in government legislation and an adjustment for the effects of inflation. The inflation factor used is based on the annual increase in the Retail Price Index.