Reductions and reliefs

Transitional relief scheme

Following revaluation of the business properties from April 2017, the government has brought in a Transitional Relief Scheme.

Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation.

To help pay for 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 times the multiplier).

The scheme applies only 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 a bill that applies to any increase in rateable value due to those changes.

From April 2017, transitional relief will apply to those who are moving to higher bills.

  • Small property size is a 2017 rateable value of less than £20,000 outside London
  • Medium property size is a 2017 rateable value of less than £100,000
  • Large property size is a 2017 rateable value above £100,000

There are limits on how much your rates can increase or decrease.

Business rate increase limits
Year
Small property
Medium property
Large property
2017 to 2018
5%
12.5%
42%
2018 to 2019
7.5%
17.5%
32%
2019 to 2020
10%
20%
49%
2020 to 2021
15%
25%
16%
2021 to 2022
15%
25%
6%
Business rate decrease limits
Year
Small property
Medium property
Large property
2017 to 2018
20%
10%
4.1%
2018 to 2019
30%
15%
4.6%
2019 to 2020
35%
20%
5.9%
2020 to 2021
55%
25%
5.8%
2021 to 2022
55%
25%
4.8%

We will automatically calculate any transitional arrangement against your business rates bill - there is no need to apply for it.

Read more about business rates relief on GOV.UK (link opens in new window), including transitional relief.