Transitional Relief for Business Rates
All rateable values are reassessed every five years at a general revaluation. 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.
Property values normally change a lot as a result of a general revaluation. Transitional relief arrangements help to phase in the effects of these changes by limiting the increases in bills. To help pay for the limits on increases in bills, there also has to be limits on those properties where revaluation leads to reduced bills. Transitional relief is awarded automatically and is applied each year.
Transitional relief applies only to a property shown on the rating list at the time of the revaluation. If there are any changes to a property after 1 April 2010, then transitional relief will not normally apply to the part of the bill that relates to any increase in rateable value due to those changes.
If you qualify for transitional relief entitlement, then this will be shown on the front of your Demand Notice.
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.
Further information about transitional arrangements and other reliefs may be obtained from the Business Rates Section or from the Business Link website (please use the link at the bottom of the page).
More information on the 2010 revaluation can be found at Valuation Office Agency website (please use the link at the bottom of the page).
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 £25,500 |
Large Property RV is £25,500 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% |
Limits on Decreases in bills
| Financial Year |
Small Property RV is less than £25,500 |
Large Property RV is £25,500 or greater |
|---|---|---|
| 2010-11 |
20% |
4.6% |
| 2011-12 |
30% |
6.7% |
| 2012-13 |
35% |
7% |
| 2013-14 |
55% |
13% |
| 2014-15 |
55% |
13% |