Property values normally change between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting the amount by which a bill may rise following a revaluation. To help pay for the limits on increases in bills after a revaluation, there also have to be limits on reductions in bills. Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the multiplier).
Over the period of the 2005 Valuation List, the maximum increases and decreases that can apply are as follows;
| Year |
Large Property (RV £15,000 or over) - Increase |
Large Property - Decrease |
Small Property (RV under £15,000) - Increase |
Small property - Decrease |
| 2005/06 |
12.5% |
-12.5% |
5.0% |
-30.0% |
| 2006/07 |
17.5% |
-12.5% |
7.5% |
-30.0% |
| 2007/08 |
20.0% |
-14.0% |
10.0% |
-35.0% |
| 2008/09 |
25.0% |
-25.0% |
15.0% |
-60.0% |
| 2009/10 |
n/a |
n/a |
n/a |
n/a |
In addition to these percentages, a provision for inflation will be added to the bill. In 2008/09 this is calculated at 1.038%.
If a property is subject to transition it means the rate bill is calculated by applying the appropriate percentage (increase or decrease) to the rates due the previous year, rather than by multiplying the 2005 rateable value by the current multiplier. However the supplement to pay for small business rate relief will also be payable unless, of course, the ratepayer is entitled to small business rate relief.
The transition scheme applies only to a bill based on a property at the time of the revaluation. If there are any changes to the property after the revaluation date, transitional arrangements will not normally apply to the part of a bill that applies to any increase in rateable value due to those changes.
Further information about transitional arrangements