Rateable values can decrease or increase fairly significantly between revaluations. This does not necessarily mean there will be a significant change in the rates bill, as the multiplier is adjusted following a revaluation to offset the overall rise or fall in values.
Some ratepayers, however, could see some dramatic changes in their rates bill. If this happens to your rates bill, it will probably be affected by transitional arrangements. Transitional arrangements soften the impact of revaluation by phasing in the changes to the rates bill over a period of time.
Different transitional arrangements will apply, depending on whether your bill has increased or decreased and whether your business is classed as small or large.
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 your rates bill from 2009-2010 to your new rates bill in 2010-2011. They are not dependent on the change in your rateable value itself.
Transitional Surcharge
Where rateable values have decreased due to a revaluation, some ratepayers will find that their actual bill to pay would fall considerably. Regulations have been made by central government which mean that in these cases ratepayers are not given the full reduction immediately; their bills will be reduced by a pre-determined percentage each year.
The set limits on the percentage by which your rates bill can decrease each year, prior to inflation, are:
Annual percentage decrease for your bill
Year
|
Small Property
(RV below £18,000)
|
Large Property
(RV £18,000 and above)
|
| 2010-11 |
20% |
4.6% |
| 2011-12 |
30% |
6.7% |
| 2012-13 |
35% |
7% |
| 2013-14 |
55% |
13% |
| 2014-15 |
55% |
13% |
Transitional Relief
Where rateable values have increased due to a revaluation, some ratepayers would find that their actual bill to pay would rise considerably. Regulations have been made by central government which mean that in these cases ratepayers would not have to pay the full increase immediately; their bill will be increased by a pre-determined percentage each year.
The set limits on the percentage by which your rates bill can increase each year, prior to inflation, are:
Annual percentage increase for your bill
Year
|
Small property
(RV below £18,000)
|
Large property
(RV £18,00 and above)
|
| 2010-11 |
5% |
12.5% |
| 2011-12 |
7.5% |
17.5% |
| 2012-13 |
10% |
20% |
| 2013-14 |
15% |
25% |
| 2014-15 |
15% |
25% |
