Transitional Arrangements

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, or Uniform Business Rate (UBR) is adjusted downwards following a revaluation to offset the overall rise 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 £15,000 outside London and under £21,500 within London.

 

Transitional arrangements are based on the change in your rates bill from 2004-2005 to your new rates bill in 2005-2006.  They are not dependent on the change in your rateable value itself.