What Are Transitional Arrangements

Helping businesses adjust to changing business rates after a revaluation

All rateable values are reassessed at a general revaluation.

The 2017 revaluation takes effect from 1 April 2017.

For those ratepayers that would otherwise see significant increases in their rates liability, the Government has put in place a transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation.

To help pay for the limits on increases in bills, there also have to be limits on reductions in bills.

Under the transitional scheme

Limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier).

When will the Scheme apply? 

The scheme applies to a property at the time of the revaluation. If there are any changes to the property after 1 April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes.

Other changes not covered 

Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements.

 Transitional Arrangement (before inflation)

Upwards increase cap
Property size * 2017/18 2018/19 2019/20 2020/21 2021/22

 – Small property

– Medium property

– Large property

5.0%

 12.5%

42.0%

 

7.5%

17.5%

32.0%

 

10.0%

20.0%

49.0%

15.0%

25.0%

 16.0%

 

15.0%

25.0%

6.0%

 
Downwards decrease cap

Property size *

2017/18 2018/19 2019/20 2020/21 2021/22

 Small property

Medium property

 Large property

20.0%

10.0%

4.1%

 

30.0%

15.0%

4.6%

 

35.0%

20.0%

5.9%

 

55.0%

25.0%

5.8%

 

55.0%

25.0%

4.8%

 

The above percentages are also subject to an allowance for inflation which is 2% for 2017/18. The inflation factor for the years after 2017/18 will be determined by the Government in future years.

  •  A small property is one with a rateable value of less than or equal to £20,000.
  • A medium property is one with a rateable value of more than £20,000 and less or equal to £100,000.
  • A large property is one with a rateable value of more than £100,000.

For further information about transitional arrangements and other reliefs  

More information on the 2017 revaluation

Contact Us

Telephone

Business Rates Enquiries

01202 454833 / 01202 451571

Address

Customer Services Centre

St Stephens Road
Bournemouth
BH2 6EB

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