Transitional Relief
Rateable Values can decrease or increase substantially between the 2000 and 2005 Revaluations, and some business rates customers could see a big difference in their 2005/06 rates bill. If this happens the charge may be adjusted through transitional relief (sometimes referred to as 'transition').
Transitional relief lessens the impact of a revaluation by phasing in the changes to the rates bill over time. Different transitional arrangements apply depending on whether the bill has increased or decreased and whether the business is classed as small or large. A small business is defined as a property with a Rateable Value of under £15,000 (under £21,500 within London).
Transitional relief is based on the change in the rates bill from 2004/05 to the new rates bill in 2005/06. It is not dependent on the actual change to the Rateable Value.
The transition scheme runs over a four year period. By the fifth year every ratepayer will pay their true rates bill and many will already be paying it before then.
The table below shows the percentage by which a rates bill can increase in a single year before transitional relief will apply:
Year Small Business Large Business2005/06 5% 12.5%2006/07 7.5% 17.5%2007/08 10% 20%2008/09 15% 25%2009/10 n/a n/a
The table below shows the percentage by which a rates bill can decrease in a single year, before transitional relief applies:
Year Small Business Large Business2005/06 30% 12.5%2006/07 30% 12.5%2007/08 35% 14%2008/09 60% 25%2009/10 n/a n/a
Transitional relief is calculated by the Council and will automatically be included in bills for April 2005. It is not possible to calculate the transitional arrangements for following years as the multiplier varies from year to year.
If you have any query regarding Transitional Relief, please contact the Customer Services team(details below).
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