Transitional Arrangements

Rateable values are reassessed every five years.

The purpose of the revaluation is not to raise extra revenue overall but to ensure rateable values are based upon up-to-date rental values. Therefore rateable values - and rates bills - for some properties may rise or fall.

Following a revaluation, special transitional arrangements are put in place to phase in significant increases or decreases in rates bills. These set limits on the percentage by which your rates can change each year. The 2005 transition scheme was designed to operate over a four year period and has now come to an end. Every ratepayer should now be paying their true rates liability.

Increases
Transitional arrangements will apply if your year's bill (based on the rateable value times the multiplier) is higher than the previous year's bill (as at 31 March) by more than the amounts shown below. If so, your bill will only be increased by the relevant percentage. The difference between the year's bill and what you actually pay is shown on your bill as Transitional Relief.

Decreases
Transitional arrangements also apply if your year's bill (based on the rateable value times the multiplier) is lower than the previous year's bill (as at 31 March) by more than the amounts shown below. If so, your bill will only be reduced by the relevant percentage. The difference between the year's bill and what you actually pay is shown as Transitional Surcharge.

The transitional arrangement for 2017-2022 can be seen using the below tables:-

Small Property – RV 20,000 or less,   Medium Property – RV over 20,000 but below/equal to 100,000, Large property – RV over 100,000                                                                                                                         

 Set limits on Increases                              

Year             Small        Medium       Large              
2017/18        5.0%        12.0%          42.0%
2018/19        7.5%        17.5%          32.0%
2019/20       10.0%       20.0%          49.0%
2020/21       15.0%       25.0%          16.0%
2021/22       15.0%       25.0%            6.0%

Set limits on Decreases:-

Year            Small       Medium      Large
2017/18       20.0%     10.0%         4.1%
2018/19       30.0%      20.0%        4.6%
2019/20       35.0%      20.0%        5.9%
2020/21       55.0%      25.0%        5.8%
2021/22       55.0%      25.0%        4.8%

The transitional arrangements do not cover changes in the rateable value because of changes to the property (eg an extension).

 

Any transitional relief you are entitled to is calculated by the Council and included in your rates bill.

Transitional arrangements and the 2010 revaluation

Following the 2010 revaluation, which comes into effect on 1 April 2010, special transitional arrangements will phase in significant increases or decreases in a business rates bill over the next five years.

The transitional arrangements mean that rates bills for businesses operating from small properties won't rise as steeply as they would do otherwise (small properties are defined as those properties with rateable values below £25,500 in Greater London or £18,000 elsewhere).

 

The set limits on the percentage by which your rates bill can increase each year, prior to inflation:-

Year             Small Property         Large Property
 
2010-11      5%                             12.5%
2011-12      7.5%                          17.5%
2012-13      10.0%                        20.0%
2013-14      15.0%                        25.0%
2014-15      15.0%                        25.0%


The set limits on the percentage by which your rates bill can decrease each year, prior to inflation:-

Year                 Small Property       Large Property
 
2010-11         20.0%                       4.6%
2011-12         30.0%                       6.7%
2012-13         35.0%                       7.0%
2013-14         55.0%                       13.0%
2014-15         55.0%                       13.0%


The transitional arrangements do not cover increases from inflation (based on the retail price index in the previous September) or changes in the rateable value because of changes to the property, eg an extension.

Any transitional relief you are entitled to is calculated by the Council and included in your rates bill.