SQL Server 2017

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6 rows affected

DECLARE @Id INT = 1100000004; -- this id
DECLARE @NewPosition INT = 1; -- needs to have this position

WITH RowToMove AS (
    -- using cte instead of variables
    SELECT Plan_Id, sequence_no AS OldPosition
    FROM planRecords
    WHERE Id = @Id
), RowsToUpdate AS (
    -- columns used inside set and where clause of the update statement
    SELECT Id, sequence_no, OldPosition
    FROM planRecords
    CROSS JOIN RowToMove
    -- select rows that belong to same category and position between old and new
    WHERE planRecords.Plan_Id = RowToMove.Plan_Id AND sequence_no BETWEEN 
        CASE WHEN OldPosition < @NewPosition THEN OldPosition ELSE @NewPosition END AND
        CASE WHEN OldPosition > @NewPosition THEN OldPosition ELSE @NewPosition END
)
UPDATE RowsToUpdate SET sequence_no = CASE
    WHEN Id = @Id THEN @NewPosition -- this is the row we are moving
    WHEN OldPosition < @NewPosition THEN sequence_no - 1 -- row was moved down, move other rows up
    WHEN OldPosition > @NewPosition THEN sequence_no + 1 -- row was moved up, move other rows down
END;

SELECT *
FROM planRecords
ORDER BY Plan_Id, sequence_no;

Id	Plan_Id	sequence_no
1100000000	1167096719	0
1100000004	1167096719	1
1100000001	1167096719	2
1100000002	1167096719	3
1100000003	1167096719	4
1100000005	1167096719	5