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Transitional arrangements

All Non-Domestic premises in England have their rateable value reassessed every five years. The latest revaluation is effective from 01 April 2010. However, the next revaluation has been postponed until 2017 to provide greater stability for businesses to encourage economic growth. Five yearly revaluation will continue from 2017.

Property values normally change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay for the limits on increases in bills after a revaluation, 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 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 the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to those changes.

Any transitional adjustments will be shown on the front of your bill and in the calculation on the rear of the bill.

Further information about transitional arrangements may be obtained from Revenue Services or on the Business Link website.

2010 Transitional Scheme

The scheme will cap increases to rates bills over a five-year period and will be funded by capping reductions in other rates bills (option 3). The caps will be structured as follows:

2010/11 2011/12 2012/13 2013/14 2014/15
RV is below £18000 Upward cap (small properties) 5% 7.5% 10% 15% 15%
RV is £18000 or more Upward cap (large properties) 12.5% 17.5% 20% 25% 25%

RV is below £18000 Downward cap (small properties) 20% 30% 35% 55% 55%
RV is £18000 or more Downward cap (large properties) 4.6% 6.7% 7% 13% 13%

The Chancellor announced in his Autumn Statement that there would be an extension of transitional arrangements for certain properties from 01 April 2015. These are as follows:-

2015/16 2016/17
RV is below £18000 Upward cap (small properties) 15% 15%
RV is above £18000 but below £50000 Upward cap (large properties) 25% 25%

NB Transitional Relief is measured before all other reliefs. This extension to the transitional relief scheme is awarded under section 47 discretionary relief powers and therefore is measured after all other reliefs have been awarded



The Rating Section
Revenue Services
PO Box 4
Town Hall




01524 582920

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