Advertising

If you have received a bill for 2017/2018 which is for a higher amount than you were expecting, this could be due to a transitional adjustment. You can find information and examples of how it is calculated on our transitional adjustment page.

Commercial premises in England undergo a review of their rateable value every 5 years. The latest revaluation is from 1st April 2017.

When these revaluations take place it can result in large increases or decreases in business rate bills. To help phase in these changes the Government put in place the business rates transitional adjustment scheme to help ratepayers.

Your annual bill will automatically be adjusted to include any transitional adjustment due.You do not need to apply for it.

Transitional adjustments phase in the increases and decreases over a five year period. Each year the change is limited and the percentage used depends on whether your property is classed as a small, medium or large property.

If your rateable value has reduced, your bill may not be as low as you were expecting. This is because we can’t award the reduction in one year, your bill must be gradually reduced over a period of time. As part of the calculation any transitional adjustment on reduced bills will be shown as a credit.

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

A further 2% will be added for inflation. 

Find out how the amount of transitional adjustment is calculated

 

Limits on increases in bills
Year Small Property Medium Property Large Property
2017/18 5% 12.5% 42%
2018/19 7.5% 17.5% 32%
2019/20 10% 20% 49%
2020/21 15% 25% 16%
2021/22 15% 25% 6%
Limits on decreases in bills
Year Small Property Medium Property Large Property
2017/18 20% 10% 4.1%
2018/19 30% 15% 4.6%
2019/20 35% 20% 5.9%
2020/21 55% 25% 5.8%
2021/22 55% 25% 4.8%

After the above has been applied a further 2% will be added for inflation.