Revaluation 2010 and Transitional Arrangements
What are Transitional Arrangements?
All rateable values are reassessed every five
years at a general revaluation. (Although under the Growth and
Infrastructure Act 2013 the government has postponed the next
revaluation from 1 April 2015 to 1 April 2017). The
current rating list is based on the 2010 revaluation.
Five-yearly revaluations make sure each ratepayer pays their
fair contribution and no more, by ensuring that the share of the
national rates bill paid by any one ratepayer reflects changes over
time in the value of their property relative to others.
Revaluation does not raise extra money for
Government.
Whilst the 2010 revaluation will not increase
the amount of rates collected nationally, within this overall
picture, over a million properties will see their business rate
liabilities reduced and some ratepayers will see increases.
For those that would otherwise see significant increases in their
rates liability, the Government has put in place a £2 billion
transitional relief scheme to limit and phase in changes in rate
bills as a result of the 2010 revaluation. To help pay for
the limits on increases in bills, 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 appropriate 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 1st April 2010, transitional arrangements will not normally
apply to the part of a bill that relates to any increase in
rateable value due to those changes.
Changes to your bill as a result of other
reasons (such as because of changes to the amount of small business
rate relief) are not covered by the transitional
arrangements.
Do I need to apply for Transitional Arrangements?
Transitional arrangements are applied
automatically and are shown on the front of your
bill.
Further information about transitional
arrangements and other reliefs may be obtained from the Business
Rates Section or from the website https://www.gov.uk/apply-for-business-rate-relief
More information on the 2010 revaluation can
be found at
Valuation Office Agency website.
What are the Transitional phasing limits?
The transitional phasing limits are as follows:-
For properties facing an increase, the increase will be limited
by the following percentages plus an amount for inflation.
Limits on Increases in bills
|
|
Financial
Year
|
Small
Property
RV is less than
£18,000
|
Large
Property
RV is £18,000 or
greater
|
|
2010-11
|
5%
|
12.5%
|
|
2011-12
|
7.5%
|
17.5%
|
|
2012-13
|
10%
|
20%
|
|
2013-14
|
15%
|
25%
|
|
2014-15
|
15%
|
25%
|
For properties facing a decrease, the decrease will be limited
by the following percentages less an amount for inflation.
Limits on Decreases in bills
|
|
Financial
Year
|
Small Property
RV is less than
£18,000
|
Large
Property
RV is £18,000 or
greater
|
|
2010-11
|
20%
|
4.6%
|
|
2011-12
|
30%
|
6.7%
|
|
2012-13
|
35%
|
7%
|
|
2013-14
|
55%
|
13%
|
|
2014-15
|
55%
|
13%
|
Contact us
If you require any further information regarding the
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