Transitional arrangements 2021/22

The transitional arrangements scheme limits the amount by which the business rate bill can increase or decrease as a result of the 2017 non-domestic rating revaluation.

Some increases and reductions will be capped and phased in up to five years until the full bill is due.

Ratepayers whose business rate bills have increased above a certain amount as a result of the 2017 revaluation will have the increase limited and phased in.

Ratepayers whose bills would otherwise have decreased below a certain amount as a result of the 2017 revaluation will also have these reductions limited and the reduction will be phased in.

The transitional arrangements are required to be self-funding. Therefore, the phasing in of the reductions in bills fund the phasing in of the increases of other ratepayers.

These transitional arrangements are applied automatically and are shown on your business rates bill.

The business rate bills for 2021/22 will be capped at the percentage limits in the table below, when compared to 2017.

 

If your bill is increasing Property size 2017-18 2018-19 2019-20 2020-21 2021-22
Limit on increases RV £20,000 or under Small 5%  7.5% 10.0% 15.0% 15.0%
RV between £20,001 and £99,999 Medium 12.5%  17.5% 20.0%  25.0% 25.0%
RV over £100,000 Large 42%  32.0% 49.0% 16.0% 6.0%
  If your bill is decreasing            
Limit on reductions RV £20,000 or under Small 20% 30.0% 35.0% 55.0% 55.0%
RV between £20,001 and £99,999 Medium 10% 15.0% 20.0% 25.0% 25.0%
RV over £100,000 Large 4.1%  4.6% 5.9% 5.8% 4.8%

 

Transitional calculations are based on the small multiplier and applied before all other reliefs.

The transitional adjustments no longer apply once the full bill is reached.