Discretionary Transition Scheme 1 April 2022 to 31 March 2023
The current transition scheme was due to run from 1 April 2017 to 31 March 2022 when a revaluation of all business rates properties would take place. This revaluation has been delayed by one year and will now take place from 1 April 2023. As this revaluation has been delayed by one year, the government has introduced a discretionary relief scheme to give some businesses the same amount of relief that they would have received if the transition scheme had continued for a further year.
Transition Bill Increase Limits
Small
Rateable value up to £20,000.
Any business in the small category that had transitional relief in 2021/22 because of a rateable value increase, and would have received this relief in 2022/23 if the scheme continued, will have the increase in their bill capped to a maximum of 15%.
Medium
Rateable value from £20,001 to £100,000.
Any business in the medium category that had transitional relief in 2021/22 because of a rateable value increase, and would have received this relief in 2022/23 if the scheme continued, will have the increase in their bill capped to a maximum of 25%
Large
Rateable value from £100,001 upwards.
Any business in the large category will pay their actual charge from 1 April 2022.
Transition Bill Decrease Limits
From 1 April 2022 there will be no limit to the amount that a bill can reduce until the actual charge is reached. Any business that was subject to transition in 2021/22 will now just pay their actual charge from 1 April 2022.