All non-domestic premises in England have their rateable value reassessed every five years. The last revaluation was effective from 1 April 2010. However, the latest revaluation was postponed until 2017 to provide greater stability for businesses to encourage economic growth. Five-yearly revaluation continues 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.
For further information about transitional arrangements please contact us.
2017 transitional scheme
|Upwards cap||Small RV (up to £20,000)||5%||7.5%||10%||15%||15%|
|Medium RV (up to £100,000)||12.5%||17.5%||20%||25%||25%|
|Large RV (above £100,000)||42%||32%||49%||16%||6%|
|Downwards cap||Small RV (up to £20,000)||20%||30%||35%||55%||55%|
|Medium RV (up to £100,000)||10%||15%||20%||25%||25%|
|Large RV (above £100,000)||4.1%||4.6%||5.9%||5.8%||4.8%|
2010 transitional scheme
The 2010 scheme capped increases to rates bills over a five-year period, funded by capping reductions in other rates bills (option 3). The caps were structured as follows:
|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 the 2014 autumn statement that there would be an extension of transitional arrangements for certain properties from 1 April 2015. These were as follows:
|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 falls under section 47 discretionary relief powers and therefore is measured after all other reliefs have been awarded.
Last updated: 04 October 2017