Business Rates

Transitional Arrangements

Property values normally change a good deal between each revaluation and Rateable Values therefore increase or decrease following a general revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount a bill can increase. To help pay for the limits on increases in bills, there also have to be limits on the reduction in bills.

Different transitional arrangements apply depending on if your bill has increased or decreased, and if your business is classed as large or small. A small business is defined as a property with a rateable value of under £18,000 outside London and under £25,500 within London.

Transitional arrangements are based on the change in the rates bill from 2009-2010 to the rates bill for 2010-2011. They are not dependent on the change in the rateable value itself. The transitional scheme operates over a 5 year period.

A new transitional calculation is made at the start of each financial year to determine if a property still falls within the scheme. The scheme only applies to properties included in the Non-Domestic List at the time of the revaluation, which is 31 March 2010. Transitional arrangements will not normally apply if there are any changes to the property after the revaluation date. The part of a bill that applies to any increases in rateable value due to those changes will not show transitional relief.

This shows the proposed limits by which a rates bill can increase in a single year before transitional arrangements apply.

This shows the proposed limits by which a rates bill can decrease in a single year before transitional arrangements apply.

These limits are also adjusted on a yearly basis to take into account fluctuations in inflation.

Further information about transitional arrangements may be obtained from Carlisle City Council on 01228 817235, or on the website at businesslink.gov.uk.