Transitional Arrangements
Rateable values are due to be reassessed every 3 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. From 01/04/2023, these transitional arrangements will only apply to significant increases in rates bills. These set limits on the percentage by which your rates can change each year as a result of revaluation.
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 (only relevant up to and including the 2022/23 financial year)
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 2023-2026 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
2023/24 5.0% 15.0% 30.0%
2024/25 10.0% 25.0% 40.0%
2025/26 25.0% 40.0% 55.0%
The transitional arrangements do not cover changes in the rateable value because of changes to the property (eg an extension). The limits on increases do not include adjustments caused by inflation.
Any transitional relief you are entitled to is calculated by the Council and included in your rates bill.
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% 12.5% 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%
2022/23 15.0% 25.0% N/A
Set limits on Decreases:-
Year Small Medium Large
2017/18 20.0% 10.0% 4.1%
2018/19 30.0% 15.0% 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%
2022/23 55.0% 25.0% N/A
The transitional arrangements do not cover changes in the rateable value because of changes to the property (eg an extension). The limits on increases and decreases do not include adjustments caused by inflation.
Any transitional relief you are entitled to is calculated by the Council and included in your rates bill.