Transitional arrangements
Rateable values are revalued nationally every five years and can increase or decrease significantly between revaluations. The last revaluation came into force on 1st April 2005 and the next one will be 2010.To protect ratepayers against what could be dramatic changes, the government introduced a scheme called "transitional arrangements" whereby the changes in the rates bills are phased in over a period of time.
Different transitional arrangements apply depending on whether your bill has increased or decreased and whether your business is classed as small or large. Small business are ones with a rateable value of less than £15,000, and large businesses have a rateable value of over £15,000.
Transitional arrangements are based on the change in your rates bill from 2004/05 to the rates bill for 2005/06 (the first year of the revaluation).
The table below shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply.
Increases in your bill
| Year | Small Business | Large Business |
|---|---|---|
| 2005/06 | 5% | 12.5% |
| 2006/07 | 7.5% | 17.5% |
| 2007/08 | 10% | 20% |
| 2008/09 | 15% | 25% |
| 2009/10 | N/A | N/A |
Slightly different arrangements apply for the proposed limits by which a rates bill can decrease in a single year, shown below.
Reduction in your bill
| Year | Small Business | Large Business |
|---|---|---|
| 2005/06 | -30% | -12.5% |
| 2006/07 | -30% | -12.5% |
| 2007/08 | -35% | -14.0% |
| 2008/09 | -60% | -25.0% |
| 2009/10 | N/A | N/A |
The Council automatically calculates your transitional arrangements and if you qualify the calculation is shown on your bill.
If you would like further clarification of the scheme please contact the Business Rates Section on 01432 260373.
