Transitional relief

The Government introduced a new transitional scheme from 1 April 2017 following the national revaluation of all non-domestic properties.

The Valuation Office Agency (VOA), HMRC, carried out a national Revaluation of all Business Rateable Values (RV) that come into effect from 1 April 2017. The rateable value is based on rental values so if rents had increased above inflation since the last revaluation 7 years ago, rates will likely go up. If rents had decreased after inflation, rates will likely go down. The VOA assess rents across a sector but ratepayers should contact the VOA if they think the value is wrong.
The amount a bill can go up or down following revaluation is limited each year under the Government Transitional Scheme.

The limits are based on your rateable value. The maximum transition increase and decrease %, from the full rates payable using the lower multiplier in 2016/17 based on the rateable in force at 31 March 2017, to 2017/18, as a result of the revaluation are shown below. In all cases an inflation increase of 2% is also applied. 

 2017/18

Rateable Value £20,000 or under Rateable Value £20,001 to £100,000 Rateable Value £100,001 or over
Maximum increase (bill gone up)   5%  12.5%  42%
Maximum decrease (bill gone down)  20%  10%  4.1%

    
The maximum transition increase and decrease % from the rates payable after transition in 2017/18, to 2018/19, as a result of the revaluation are shown below. In all cases an inflation increase of 3% is also applied. 

 2018/19

Rateable Value £20,000 or under Rateable Value £20,001 to £100,000 Rateable Value £100,001 or over
Maximum increase (bill gone up)   7.5%  17.5%  32%
Maximum decrease (bill gone down)  30%  15%  4.6%

 
The maximum transition increase and decrease % from the rates payable after transition in 2018/19, to 2019/20, as a result of the revaluation are shown below. In all cases an inflation increase of 2.3% is also applied. 

 2019/20

Rateable Value £20,000 or under Rateable Value £20,001 to £100,000 Rateable Value £100,001 or over
Maximum increase (bill gone up)   10%  20%  49%
Maximum decrease (bill gone down)  35%  20%  5.9%

 
There are limits on increases and decreases each year until your rates payable without transition are lower than the limit (increases) or higher than the limit (decreases) at which point you no longer fall into transition. In each year an inflation increase is also applied.    

Please note increases in your rateable value for any other reason (i.e. not as a result of the revaluation) are not subject to transition. In certain circumstances the rateable value(s) used for transition can be different to the actual rateable value(s) in force. 

If your rateable value is over £50,999 or your property is empty or entitled to other mandatory relief your bill is calculated using a higher multiplier instead of the small business multiplier. The difference (1.3p) is not subject to the transitional calculation.

You can use our transitional relief calculator spreadsheet to view a breakdown of how transitional relief has been calculated.  Please note this will not take account of any changes to your rateable value since the revaluation came into effect. If the calculation does not match that on your bill and you do not know the reason why please contact us.

If your rateable value is under £15,000 you may be entitled to small business rate relief.  Visit the gov.uk website for more information. 

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