Business rates in detail

Transitional adjustments 2017-2018 to 2021-2022

Transitional adjustments will phase in the effect of significant changes in liability, which arise from the revaluation of non-domestic properties.

There are limits on the percentage by which bills may increase or decrease each year. Special rules deal with changes in rateable values and the merger or splitting of existing properties. Any new properties entered into the rating list after 1 April 2017 will not be subject to the transitional arrangements for this valuation period.

The limits on increases and decreases for the 5 year valuation period 1 April 2017 to 31 March 2022 are detailed below. These increases and decreases are in addition to any adjustment for inflation.

Transitional arrangements 2017-2018 to 2021-2022
Property size* 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
Upwards Cap  Small  5.0% 7.5% 10.0% 15.0% 15.0%
 Medium  12.5% 17.5% 20.0% 25.0% 25.0%
 Large  42.0% 32.0% 49.0% 16.0% 6.0%
Downwards Cap  Small 20.0% 30.0% 35.0% 55.0% 55.0%
 Medium 10.0% 15.0% 20.0% 25.0% 25.0%
 Large 4.1% 4.6% 5.9% 5.8% 4.8%

*Property size is determined by rateable value. Small is up to £28,000, medium is above £28,000 and large is above £100,000.

Note: these are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64%. But a small property with an increase of 7% would reach their full bill in year 2.

If you are entitled to transitional relief this will automatically be awarded and be shown on your bill.

More information about business rates and other reliefs here and in our guide.