Transitional Relief

Transitional Arrangements - History

The revaluation in 1990 was the first for 17 years, and it had a significant impact on the rate liabilities of some businesses. The Government introduced a transitional scheme to phase in the effects of these changes.

Transitional arrangements again phased in the effect of significant changes in liability, which arose from the 1995 revaluation of Non-Domestic (Business) property.

Transitional Relief 2000 Revaluation

Again transitional arrangements will phase in the effect of changes in liability.

Transitional Relief Explained

The scheme has again been introduced to limit the increases or decreases in the non-domestic rate bills from the 1st April 2005 to the 31st March 2010, when all Non-Domestic (Business) properties will again be revalued.

The Base Bill

In order to decide whether your property is subject to transitional arrangements, the full charge for the year is calculated and compared to the previous year's actual charge.

The limited amount for one year forms the basis bill for the following year.

The arrangements where applicable will continue for up to 4 years.

How are increases limited?

If on the 1st April 2000 the rateable value of your property was less than £12,000, the following table, under the heading small property, shows the maximum increase for each year before allowing for inflation.

If on the 1st April 2000 the rateable value of your property was £12,000 or more, the following table, under the heading large property, shows the maximum increase for each year before allowing for inflation.

Year	Small Property (new Rateable Value less than £12,000)	Large Property (all others)
2005/2006	5%	12.5%
2006/2007	7.5%	15%
2007/2008	7.5%	17.5%
2008/2009	7.5%	17.5%
2009/2010	No Relief	No Relief

Here's how it works:
For example: Small property rateable value £6500 x 42.2p "rate poundage" = £2886 (actual charge for 2003/04).

	Amount
Annual bill 1999/2000	£2000.00
2000-01
Plus Maximum increase of 5% Plus inflation (1.1%)	£100.00+ £23.10 +
Actual amount payable 2000/2001	£2123.10
2001-02
Plus Maximum increase of 7.5% Plus inflation (1.33%)	£159.23+ £75.32+
Actual amount payable 2001/2002	£2357.65
2002-03
Plus Maximum increase of 7.5% Plus inflation (1.17%)	£176.82 £43.09
Actual amount payable 2002/2003	£2577.56
2003-04
Plus Maximum increase of 7.5% Plus inflation (1.17%)	£193.31+ £47.11+
Actual amount payable 2003/2004	£2817.98

How are decreases limited?

If on the 1st April 2000 the rateable value of your property was less than £12,000, the following table, under the heading small property, shows the maximum decrease for each year before allowing for inflation.

If on the 1st April 2000 the rateable value of your property was £12,000 or more, the following table, under the heading large property, shows the maximum decrease for each year (before allowing for inflation).

Year	Small Property (new Rateable Value less than £12,000)	Large Property (all others)
2000/2001	5%	2.5%
2001/2002	5%	2.5%
2002/2003	10%	5%
2003/2004	12.5%	7.5%
2004/2005	25%	15.5%

Here's how it works:
For example: Small property rateable value £3700 x 44.4p "rate poundage" = £1642.80 (actual charge for 2003/04).

	Amount
Annual bill 1999/2000	£2000.00
2000-01
Less Maximum decrease of 5% Plus inflation (1.1%)	£100.00 - £20.90 +
Actual amount payable 2000/2001	£1920.90
2001-02
Less Maximum decrease of 5% Plus inflation (1.33%)	£96.05- £60.23+
Actual amount payable 2001/2002	£1885.08
2002-03
Less Maximum decrease of 10% Plus inflation (1.17%)	£188.51- £28.84+
Actual amount payable 2002/2003	£1725.41
2003-04
Less Maximum decrease of 12.5% Plus inflation (1.17%)	£215.68- £25.67+
When these figures are added and deducted from the charge for 2002/2003 the amount due has reduced to the actual charge due of £1642.80. This account is no longer entitled to the transitional relief calculation. The annual acharge for 2003/2004 is:	£1642.80

Different rules apply if the rateable value of your property has changed since 1st April 2000.

Will my transitional relief be affected if I appeal?
If your bill is affected by transitional arrangements, you may find that a change in rateable value following an appeal makes no difference to the amount you pay until a later year.

However, if your rateable value is reduced because of alterations to your property or in the local area after 1st April 2000, your bill should be reduced in the same proportion. If it increases, your bill will go up to reflect the full value of the increase in your rateable value (i.e. the difference between your new rateable value and the one it replaces).

For leaflets giving more information about these reliefs please contact the Non-Domestic Rates (Business Rates) Section.

If you have any questions about this information, please contact the Non-Domestic Rates (Business Rates) Section on 01263 516110.