Revaluation 2023 and transitional arrangements
What are transitional arrangements? All rateable values are reassessed every five years at a general revaluation.
Transitional arrangements are applied automatically and are shown on the front of your bill.
More information on the 2023 revaluation can be found at the Valuation Office Agency website.
Transitional relief limits how much your bill can change each year as a result of business rates revaluation. The latest revaluation came into effect on 1 April 2023.
This means changes to your bill are phased in gradually, if you’re eligible.
From the 2023 to 2024 tax year you’ll get transitional relief if your:
- property is in England
- rates go up by more than a certain amount
Your bill will be automatically changed 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 1 April to 31 March the following year.
If your bill is increasing from 1 April 2023:
Rateable value: Up to £20,000
- 2023 to 2024 is 5%
- 2024 to 2025 is 10% plus inflation
- 2025 to 2026 is 25% plus inflation
Rateable value: £20,001 to £100,000
- 2023 to 2024 is 15%
- 2024 to 2025 is 25% plus inflation
- 2025 to 2026 is 40% plus inflation
Rateable value: Over £100,000
- 2023 to 2024 is 30%
- 2024 to 2025 is 40% plus inflation
- 2025 to 2026 is 55% plus inflation
Note : All caps are before other reliefs, supplements and, in years 2 and 3, inflation. Actual bill changes may therefore vary from these percentages. Caps are cumulative year on year e.g. for small properties the total cap over the 3 years before inflation is 44%.
Rateable values are the amount of rent a property could have been let for on a set valuation date.For the 2023 valuation, that date was 1 April 2021.
We use rateable to calculate business rates bills.
Revaluations are carried out to reflect changes in the property market, which means that business rates bills are based on more up-to-date information.
The next revaluation came into effect on 1 April 2023.
Contacting the Valuation Office Agency:
We are responsible for anything to do with your business rates bill. The VOA is responsible for the valuation of your property. You will therefore need to contact the VOA for all queries about your rateable value.
You are now able to see the future rateable value for your property and get an estimate of what your 2023/24 business rates bill may be. You can do this through the VOA’s Find a Business Rates Valuation Service on GOV.UK.
Your property details need changing
To tell the VOA about changes to your property details (such as floor area sizes and parking) you need a business rates valuation account. The VOA may accept your changes and update the current and future valuations.
From 1 April 2023, you will need to use a business rates valuation account to tell the VOA you think your rateable value is too high. You must continue to pay your business rates as normal until a decision has been made.
Sign in or register for a business rates valuation account ready for April 1 2023
The VOA bases most rateable values on an estimate of what it would cost to rent a property for a year, starting on a certain date.
For the 2023 valuation, that date was 1 April 2021. This was during the pandemic and the rent information the VOA used reflected this.