Business rates relief

Transition scheme

If there has been a large rise or drop in the rateable value of your property from 1 April 2017, it will probably be affected by transitional arrangements.

Different transitional arrangements will apply, depending on whether your bill has increased or decreased and whether your business is classed as small, medium or large.

A small business is defined as a property with a rateable value of up to £28,000. Medium properties have a rateable value of £28,001 up to £100,000. Large properties have rateable values of £100,001 and over. 

Transition scheme

The transition scheme operates over a five-year period.

Table 1 shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply:

Table 1
Year Small business  Medium business Large business
2017/18 5%  12.5% 42%
2018/19 7.5%  17.5%  32%
2019/20  10%  20% 49%
2020/21  15%
 25% 16%
2021/22  15%  25%  6%

Slightly different arrangements apply for the proposed limits by which a rates bill can decrease in a single year, shown in Table 2 below.

Table 2
Year Small business Medium business  Large business
2017/18 20%  10% 4.1%
2018/19 30%  15% 4.6%
2019/20 35%
 20% 5.9%
2020/21 55%
 25% 5.8%
2021/22 55%  25% 4.8%

If the transitional scheme applies to your bill, it will automatically be shown.

Where transition does not apply

For properties where transition does not apply, the annual rate bill will increase in line with inflation until the next revaluation.

Examples of how the transitional scheme works in practice can be viewed at the Business Link website.