Transitional Relief
Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting increases in bills. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier).
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1st April 2005, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes.
The transitional scheme introduced for the revaluation in 2005 makes sure that business rates bills do not, as a result of the revaluation, change beyond certain limits in 2005/06. Under the scheme limits continue to apply, to the yearly increases and decreases, for the first four years of the life of the valuation list. However, the transitional scheme ends after the forth year and all rate bills for the year 2009/10 will, therefore, be worked out by multiplying the rateable value of the property by the appropriate multiplier.
Transitional limits apply if the amount payable, based on the rateable value times the multiplier, is higher than the previous rates bill by more than the amounts below. If this is the case your bill will increase by the following amounts.
Small Property (rateable value <£15,000) | Large Property (all others) |
|
| 2005/06 | 5.0% | 12.5% |
| 2006/07 | 7.5% | 17.5% |
| 2007/08 | 10.0% | 20.0% |
| 2008/09 | 15.0% | 25.0% |
| 2009/10 | n.a. | n.a. |
Transitional limits also apply if the amount payable, based on the rateable value times the multiplier, is lower than the previous rates bill by more than the amounts below. If this is the case your bill will reduce by the following amounts.
Small Property (rateable value <£15,000) | Large Property (all others) |
|
| 2005/06 | 30.0% | 12.5% |
| 2006/07 | 30.0% | 12.5% |
| 2007/08 | 35.0% | 14.0% |
| 2008/09 | 60.0% | 25.0% |
| 2009/10 | n.a. | n.a. |
But remember, after these limits have been applied, your bill will also increase in line with inflation. This is based on the retail price index for the previous September.
Further information about transitional arrangements and other reliefs may be obtained from Revenue Services or the website www.mybusinessrates.gov.uk.
 |
Listen |  |
Feedback |  |
