Transitional Relief

Transitional relief is a Government scheme which ensures that large increases or large decreases in rates bills which are due to the revaluation are phased in gradually over a number of years.

At each revaluation, a transitional scheme is introduced to protect the ratepayer from sharp increases in their rates bill. This is because property values, which affect the rental potential of the property and therefore the rateable value on which rate bills are calculated, change a good deal between each revaluation. Transitional relief is designed to ease the impact of revaluation, by phasing in the changes to the rates bill over a period of time. To help pay for the limits on increases in bills after a revaluation, there are also limits on reductions in bills.

Under the 2010 transitional relief scheme, limits continue to apply to yearly increases and decreases until 31 March 2015.

The transitional arrangements apply only to the bill based on your property at the time of the revaluation. If there are any changes to the rateable value of the property (eg because an extension has been added) after the revaluation date, transitional arrangements will not normally apply to the part of your bill that applies to any increase or decrease in rateable value due to those changes.

The list below show the maximum increases and decreases Business Rates bills in transition will be subject to during the course of the current scheme.

Maximum Annual Increases 

2010/2011

Large Property 12.5%

Small Property 5%

2011/2012 

Large Property 17.5%

Small Property 7.5%

2012/2013

Large Property 20%

Small Property 10%

2013/2014

Large Property 25%

Small Property 15%

2014/2015

Large Property 25%

Small Property 15%

Maximum Annual Decreases 

2010/2011

Large Property 4.6%

Small Property 20%

2011/2012 

Large Property 6.7%

Small Property 30%

2012/2013

Large Property 7%

Small Property 35%

2013/2014

Large Property 13%

Small Property 55%

2014/2015

Large Property 13%

Small Property 55%

The inflationary increase for 2014/2015 is 1.019% (1.027% for 2013/2014) inflation needs to be accounted for before transition is applied.

Last reviewed: 04 - 03 - 2015

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