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The government is putting in place exceptional measures to help businesses with the 2017 business rates revaluation through the transitional relief scheme. We are providing the same transitional relief to small and medium businesses as was provided at the previous business rates revaluation in 2010.
The government continues to believe it is important to provide the greatest support to small and medium businesses seeing increases and to also allow those small and medium businesses seeing reductions to gain quickly from the revaluation.
Many ratepayers will see only a small change in their rates bill at the revaluation. However, some properties will see a more significant change – both increases and reductions. Transitional arrangements are used to phase in these changes.
The transitional arrangements will support ratepayers by allowing them time to adjust to their new rates bills. Those ratepayers facing increases (who will be in sectors and locations where rateable values have increased more than the average) will see their bill capped each year at a set percentage increase due to the revaluation. Those businesses will be able to plan for their rates future bills.
As with the 2010 transitional arrangements, the caps on increases and reductions will be calculated before the large property and London supplements. Changes in business rate bills for reasons unconnected to the revaluation (such as changes to the property or other reliefs) are also outside of the transitional arrangements.