Business rates reductions and exemptions

1 April 2023 to 31 March 2026

Transitional Rate Relief phases in the effect of significant changes in liability arising from the 2023 Re-Valuation of all non-domestic property, which has been conducted by the Valuation office Agency. Where appropriate, the scheme will operate until March 2026 (when all non-domestic property will be revalued again).

Transitional Rate Relief helps to phase in the effects of the changes in rateable value for ratepayers facing increased bills. Under the transition scheme, limits continue to apply to yearly increases until the full amount is due (rateable value x the multiplier).

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

Any transitional adjustments affecting what a ratepayer pays are shown on the front of the rates bill.

Special rules also deal with changes in rateable values and the merger or splitting of existing properties.

The basis for calculating transitional arrangements in any year is the amount of business rates payable on a property as at 31 March of the previous financial year, after taking into account the limit set in government legislation and an adjustment for the effects of inflation.

The limit by which the business rates for a property may increase from one year to the next depends on which of the following categories the property falls into:

How are increases limited by Transitional Relief?

Your bill each year will be based on your rateable value times the multiplier. However, if this means the amount you have to pay goes up and the increase would exceed the limits given in the table below, you will qualify for transitional relief.

The following table shows the maximum increase each year over the life of the scheme (before allowing for inflation). These limits will be applied each year until you are paying the full amount.

There is no need for a ratepayer to apply for the transitional arrangements as these are calculated automatically and any entitlement will be shown on the bill.

Further information about transitional arrangements.