The government introduced a new transitional scheme from 1 April 2023 following the national revaluation of all non-domestic properties.
Rateable values
The Valuation Office Agency (VOA), HMRC, carried out a national Revaluation of all Business Rateable Values (RV) that came into effect from 1 April 2023.
The rateable value is based on rental values so if rents have increased above inflation since the last revaluation, rates will likely go up. If rents have decreased after inflation, rates will likely go down.
The VOA assess rents across a sector. If you think the rateable value is wrong, please contact the VOA.
Limits
The amount a bill can go up following revaluation is limited each year under the Government Transitional Scheme.
The limits are based on your rateable value. The maximum transition increase percentage, from the full rates payable using the lower multiplier in 2022 to 2023 based on the rateable value in force at 31 March 2023, to 2023 to 2024, as a result of the revaluation are shown below. In most years an inflation increase is also applied, but the government have not applied any inflation increase for 2023 to 2024 and 2024 to 2025.
Maximum business rate transitional increase percentage is dependent on the rateable value on 1 April 2023
Maximum increase (bill gone up) from 2022 to 2023, solely due to the revaluation, for 2023 to 2024 is:
- rateable value £20,000 or under: 5%
- rateable value £20,001 to £100,000: 15%
- rateable value £100,001 or over: 30%
Transition will continue each year until your rateable value multiplied by the lower multiplier is, after inflation, less than the maximum increase allowed, at which point transition will no longer apply.
The maximum increase from 2023 to 2024, solely due to the revaluation, for 2024 to 2025 is:
• rateable value £20,000 or under: 10%
• rateable value £20,001 to £100,000: 25%
• rateable value £100,001 or over: 40%
For more information see GOV.UK: transitional relief.
Calculating transitional relief
You can use our calculator to view a breakdown of how transitional relief has been calculated in 2023 to2024 and 2024 to 2025:
This will not take account of any changes to your rateable value since the revaluation came into effect and does not include any other discounts or relief that may show on your bill.
If the calculation does not match the transitional calculation on your bill and you do not know the reason why please contact us:
Business rates general enquiry on My Account
If any of the following apply, your bill is calculated using a higher multiplier instead of the lower multiplier:
- your rateable value is over £50,999
- 2023/24 only: your property is empty
- 2023/24 only: your property is entitled to other mandatory relief
The difference between the lower and higher multiplier is not subject to the transitional calculation.
If your rateable value is under £15,000 you may be entitled to small business rate relief. Visit GOV.UK: small business rate relief for more information.
Increases in your rateable value for any reason, other than due to the revaluation, are not subject to transition.
In certain circumstances the rateable values used for transition can be different to the actual rateable values in force.