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Business Rates Transitional Relief

Business Rates Transitional Phasing arrangements

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 above please contact us by;

IRRV