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.
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 2023. Where appropriate, these arrangements will operate until March 2026, which is when all non-domestic property will be revalued again
In the Autumn Statement on 17th November 2022 it was announced that for the 2023 revaluation properties with falls in rateable values will see the full benefit of that reduction in their new Business rates bill from April 2023.
Transitional arrangements from 1 April 2023 will help to phase in the effects of the changes in rateable value for ratepayers facing increased bills. Under the transition scheme, limits continue to apply to yearly increases 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.
Find out more information about business rates and transitional relief.