Transitional Arrangements
Property values normally change a good deal between each
revaluation and Rateable Values therefore increase or decrease
following a general revaluation every five years. 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.
Current 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.
The limits by which a bill can increase each year
before transitional arrangements apply are as follows.
| Year |
Small property |
Large property |
| 2010-11 |
5% |
12.5% |
| 2011-12 |
7.5% |
17.5% |
| 2012-13 |
10% |
20% |
| 2013-14 |
15% |
25% |
| 2014-15 |
15% |
25% |
The limits by which a bill can decrease each year before
transitional limits apply are as follows;
| Year |
Small property |
Large Property |
| 2010-11 |
20% |
4.6% |
| 2011-12 |
30% |
6.7% |
| 2012-13 |
35% |
7% |
| 2013-14 |
55% |
13% |
| 2014-15 |
55% |
13% |
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 (external
link).