Property values can change a lot in the five years between each revaluation, so the Government provides a transitional relief scheme that phases in the impact of the new rateable values. This scheme ensures that dependent on the size of each business, their rate bill will not increase by more than a set amount. To finance this phasing, the Government also limits the amount business rates can reduce by. For 2010/11, the limits for increases and decreases in rate bills are as follows:
Properties with Rateable Value less than £18,000:
Increase 3.5%
Decrease 21.1%
Properties with Rateable Value £18,000 or more:
Increase 10.9%
Decrease 5.9%
Unlike some reductions in your charge, you do not need to apply for transitional relief. It will be worked out automatically and shown on your bill.
For the 2010 valuation list, the transitional relief scheme applies over a five year period.
The rate bill before any relief is calculated by multiplying the rateable value by the non domestic rating multiplier or the small business non domestic rating multiplier , if small business rate relief applies .
