Transition arrangements

Rateable values can change a good deal between each five-yearly revaluation.

Transitional arrangements have been put in place to phase in the effects of these changes by limiting increases in bills year on year.

To help pay for the limits on increases in bills, limits have also been placed 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 rating multiplier).

The following table details the limits that will be applied over the life of the 2010 Rating List. Small properties are defined as having rateable values below £18,000 and larger properties above £18,000.

The table does not take into account the effects of inflation, which would also have to be factored into the calculation (for example 2% inflation would result in the following calculation for the 2010-2011 upward limit for small properties 5% x 1.02 = 5.1%.

  2010-11   2011-12    2012-13   2013-14  2014-15  

Upward Limit (Small Properties)

5%

 7.5% 10% 15% 15%

Upward Limit (Large Properties)

 13% 17.5% 20% 25% 25%

Downward Limit (Small Properties)

20%

 30% 35% 55% 55%

Downward Limit (large Properties)

 4.6% 6.7% 7% 13% 13%

Changes in property after 1 April 2010

The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to a single property after 1st April 2010 which result in an increased rateable value, transitional arrangements will not normally apply to the increased part of the bill.

Special rules apply for changes to rateable values following the merging, splitting or reorganization of existing properties whereby the sum of the amount of existing transitional relief is apportioned between the reconstituted parts.