Transitional arrangements
Historically, all non-domestic premises in England have their rateable value reassessed every five years. However, the last revaluation was postponed until 2017 to provide greater stability for businesses to encourage economic growth. The 2023 revaluation comes into effect with a new list on the 1st April 2023 and rateable values thereafter will be reassessed every three years, meaning the next revaluation will take place in April 2026.
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. The government introduced a new transitional scheme from 1 April 2023.
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. In most years an inflation increase is also applied, but the government has not applied any inflation increase for 2023/24. Under the transition scheme, limits continue to apply to yearly increases until the full amount is due (rateable value times the multiplier).
|
Rateable value |
2023 to 2024 |
2024 to 2025 |
2025 to 2026 |
|
Up to £20,000 (£28,000 in London) |
5% |
10% plus inflation |
25% plus inflation |
|
£20,001 (£28,001 in London) to £100,000 |
15% |
25% plus inflation |
40% plus inflation |
|
Over £100,000 |
30% |
40% plus inflation |
55% plus inflation |
The scheme applies only 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 a bill that applies to any increase in rateable value due to those changes.
Any transitional adjustments will be shown on the front of your bill and in the calculation on the rear of the bill.
For further information about transitional arrangements please contact us.
2017 transitional scheme
| Property size | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
|---|---|---|---|---|---|---|
| Upwards cap | Small RV (up to £20,000) | 5% | 7.5% | 10% | 15% | 15% |
| Medium RV (up to £100,000) | 12.5% | 17.5% | 20% | 25% | 25% | |
| Large RV (above £100,000) | 42% | 32% | 49% | 16% | 6% | |
| Downwards cap | Small RV (up to £20,000) | 20% | 30% | 35% | 55% | 55% |
| Medium RV (up to £100,000) | 10% | 15% | 20% | 25% | 25% | |
| Large RV (above £100,000) | 4.1% | 4.6% | 5.9% | 5.8% | 4.8% |
Last updated: 15 March 2023