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. Normally to help pay for the limits on increases in bills after a revaluation, there are also limits on reductions in bills.
A new transitional relief scheme has been announced by the Government for the 2023 revaluation. The scheme will support ratepayers who have seen an increase to their bill following the revaluation. No transition will be added to ratepayers who have had a decrease in their rateable value.
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.