Transitional relief for business rates
Transitional relief is a Government scheme which ensures that large increases or large decreases in rates bills which are due to the revaluation are phased in gradually over a number of years.
At each revaluation, a transitional scheme is introduced to protect the ratepayer from sharp increases in their rates bill. This is because property values, which affect the rental potential of the property and therefore the rateable value on which rate bills are calculated, change a good deal between each revaluation. Transitional relief is designed to ease the impact of revaluation, by phasing in the changes to the rates bill over a period of time. To help pay for the limits on increases in bills after a revaluation, there are also limits on reductions in bills.
Under the 2017 transitional relief scheme, limits will apply to yearly increases and decreases until 31 March 2022.
The transitional arrangements apply only to the bill based on your property at the time of the revaluation. If there are any changes to the rateable value of the property (eg because an extension has been added) after the revaluation date, transitional arrangements will not normally apply to the part of your bill that applies to any increase or decrease in rateable value due to those changes.