The VOA regularly reassess and update the rateable values of all business properties. This is called a Revaluation. This is done to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market. Revaluation does not raise extra revenue overall.

From the 1 April 2023, the Valuation Office Agency (VOA) is updating the rateable value of all business properties.

For more information on the 2023 Revaluation, rateable values, and business rates go to www.gov.uk/voa/revaluation.

You can also estimate your business rates bill, including any small business rate relief the local council may apply.

Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements. The transitional arrangements are applied automatically and are shown on the front of your bill.

If you require more information please contact the team by email or on the number above or email us at: [email protected]

Transitional Arrangements

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.

To help pay for limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).

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.

From April 2023, transitional relief will apply to those who are moving to higher bills.

  • Small property size is a 2023 rateable value of less than £20,000 outside London
  • Medium property size is a 2023 rateable value of less than £100,000
  • Large property size is a 2023 rateable value above £100,000

There are limits on how much your rates can increase or decrease.

Rate increase limits
Year 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 (£28,000 in London) to £100,000 15% 25% plus inflation 40% plus inflation
Over £100,000 £30% 40% plus inflation 55% plus inflation
       
Rate decrease limits
Year2017 to 20182018 to 20192019 to 20202020 to 20212021 to 2022
Small property20%30%25%55%55%
Medium property10%15%20%25%25%
Large property4.1%4.6%5.9%5.8%4.8%

 

The council will automatically calculate any transitional arrangement against your Business Rates bill - there is no need to apply for it.

27 March 2024