The transitional relief scheme was introduced in 2017 to help those ratepayers who were faced with higher bills as a result of the revaluation. The scheme ends on 31 March 2022, as a result a small number of ratepayers would face a jump to their full rates bill from 1 April 2022.

At the Budget on 27 October 2021 the government therefore announced that it would extend the current transitional relief scheme and the supporting small business scheme for one year to the end of the current revaluation cycle. The scheme will restrict increases in bills to 15% for businesses with small properties (up to and including £20,000 rateable value) and 25% for medium properties (up to and including £100,000 rateable value).

Your council will adjust your bill automatically if you’re eligible.

How much your bill can change by?

How much your bill can change by from one year to the next depends on both:

  • Your property’s rateable value
  • Whether your bill is increasing or decreasing as a result of revaluation

You stop getting transitional relief when your bill reaches the full amount set by a revaluation.

The business rates year is from 1st April to 31st March the following year.

2022/2023 amounts

If your bill is increasing

Year Rateable value up to £20,000 £20,001 - £100,000
2022/23 15% 25%

If your bill is decreasing

There is no transitional relief applicable for those in a downward transition to lower bills, those will fall to their full bill on 1 April 2022.

Previous years amounts

If your bill is increasing

Year Rateable value up to £20,000 20,001 to £99,999 Over £100,000
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%

If your bill is decreasing

Year Rateable value up to £20,000 20,001 to £99,999 Over £100,000
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%

Further information about transitional arrangements is available in the business rates section or on the Government business rates website.

Subsidy control

  • The extension of transitional relief and Supporting Small Business (SSB) relief scheme is likely to amount to subsidy. Any relief provided by Local Authorities under this scheme will need to comply with the UK’s domestic and international subsidy control obligations.
  • To the extent that a Local Authority is seeking to provide relief that falls within the Small Amounts of Financial Assistance Allowance, Article 364 of the TCA allows an economic actor (e.g. a holding company and its subsidiaries) to receive up to 325,000 Special Drawing Rights (£343,000 as at 9 December 2021) in a three-year period (consisting of the 2022/23 financial year and the two previous financial years) Expanded Retail Discount granted in either 2020/21 or 2021/22 does not count towards the £343,000 allowance but BEIS business grants (throughout the 3 years) and any other subsidies claimed under the Small Amounts of Financial Assistance limit, should be counted.
  • In those cases where it is clear to the local authority that the ratepayer is likely to breach the Small Amounts of Financial Assistance Allowance then the authority should automatically withhold the relief.

Policy

Warwick District Councils agreed policy for Transitional Relief and Supporting Small Business Rates Relief.