Property values can change a good deal between each revaluation. Transitional arrangements help to phase in the effects of these changes by limiting increases in bills. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transition scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate rating multiplier).

Where appropriate, these arrangements will operate until March 2009 with no property benefiting from transitional relief in 2009/2010. All non-domestic property will be revalued from 1 April 2010.

Changes in property after 1 April 2005

The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to a single property after 1st April 2005 which result in an increased ratable value, transitional arrangements will not normally apply to the increased part of the bill.

Special rules apply for changes to rateable values following the merging, splitting or reorganisation of existing properties whereby the sum of the amount of existing transitional relief is apportioned between the reconstituted parts.

More Information

Further information about transitional arrangements can be obtained from the Business Rate team or the government website www.mybusinessrates.gov.uk